Correlation Between Concentrix and Thoughtworks Holding
Can any of the company-specific risk be diversified away by investing in both Concentrix and Thoughtworks Holding at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Concentrix and Thoughtworks Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Concentrix and Thoughtworks Holding, you can compare the effects of market volatilities on Concentrix and Thoughtworks Holding and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Concentrix with a short position of Thoughtworks Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Concentrix and Thoughtworks Holding.
Diversification Opportunities for Concentrix and Thoughtworks Holding
-0.9 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Concentrix and Thoughtworks is -0.9. Overlapping area represents the amount of risk that can be diversified away by holding Concentrix and Thoughtworks Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thoughtworks Holding and Concentrix is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Concentrix are associated (or correlated) with Thoughtworks Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thoughtworks Holding has no effect on the direction of Concentrix i.e., Concentrix and Thoughtworks Holding go up and down completely randomly.
Pair Corralation between Concentrix and Thoughtworks Holding
Given the investment horizon of 90 days Concentrix is expected to under-perform the Thoughtworks Holding. In addition to that, Concentrix is 4.51 times more volatile than Thoughtworks Holding. It trades about -0.18 of its total potential returns per unit of risk. Thoughtworks Holding is currently generating about 0.03 per unit of volatility. If you would invest 446.00 in Thoughtworks Holding on August 24, 2024 and sell it today you would earn a total of 1.00 from holding Thoughtworks Holding or generate 0.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 69.57% |
| Values | Daily Returns |
Concentrix vs. Thoughtworks Holding
Performance |
| Timeline |
| Concentrix |
| Thoughtworks Holding |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
Concentrix and Thoughtworks Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Concentrix and Thoughtworks Holding
The main advantage of trading using opposite Concentrix and Thoughtworks Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Concentrix position performs unexpectedly, Thoughtworks Holding can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Thoughtworks Holding will offset losses from the drop in Thoughtworks Holding's long position.| Concentrix vs. Genpact Limited | Concentrix vs. ExlService Holdings | Concentrix vs. Science Applications International | Concentrix vs. CLARIVATE PLC |
| Thoughtworks Holding vs. ExlService Holdings | Thoughtworks Holding vs. Genpact Limited | Thoughtworks Holding vs. ASGN Inc | Thoughtworks Holding vs. TTEC Holdings |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Transaction History module to view history of all your transactions and understand their impact on performance.
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