Correlation Between Concentrix and WNS Holdings
Can any of the company-specific risk be diversified away by investing in both Concentrix and WNS Holdings 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 WNS Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Concentrix and WNS Holdings, you can compare the effects of market volatilities on Concentrix and WNS Holdings 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 WNS Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Concentrix and WNS Holdings.
Diversification Opportunities for Concentrix and WNS Holdings
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Concentrix and WNS is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Concentrix and WNS Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WNS Holdings 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 WNS Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WNS Holdings has no effect on the direction of Concentrix i.e., Concentrix and WNS Holdings go up and down completely randomly.
Pair Corralation between Concentrix and WNS Holdings
Given the investment horizon of 90 days Concentrix is expected to under-perform the WNS Holdings. In addition to that, Concentrix is 1.05 times more volatile than WNS Holdings. It trades about -0.18 of its total potential returns per unit of risk. WNS Holdings is currently generating about 0.15 per unit of volatility. If you would invest 4,782 in WNS Holdings on August 24, 2024 and sell it today you would earn a total of 408.00 from holding WNS Holdings or generate 8.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Concentrix vs. WNS Holdings
Performance |
| Timeline |
| Concentrix |
| WNS Holdings |
Concentrix and WNS Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Concentrix and WNS Holdings
The main advantage of trading using opposite Concentrix and WNS Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Concentrix position performs unexpectedly, WNS Holdings 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 WNS Holdings will offset losses from the drop in WNS Holdings' long position.| Concentrix vs. Genpact Limited | Concentrix vs. ExlService Holdings | Concentrix vs. Science Applications International | Concentrix vs. CLARIVATE PLC |
| WNS Holdings vs. Genpact Limited | WNS Holdings vs. ASGN Inc | WNS Holdings vs. CACI International | WNS Holdings vs. ExlService 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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