Correlation Between CSP and WNS Holdings
Can any of the company-specific risk be diversified away by investing in both CSP 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 CSP and WNS Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CSP Inc and WNS Holdings, you can compare the effects of market volatilities on CSP 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 CSP with a short position of WNS Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of CSP and WNS Holdings.
Diversification Opportunities for CSP and WNS Holdings
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between CSP and WNS is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding CSP Inc and WNS Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WNS Holdings and CSP 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 CSP Inc 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 CSP i.e., CSP and WNS Holdings go up and down completely randomly.
Pair Corralation between CSP and WNS Holdings
Given the investment horizon of 90 days CSP is expected to generate 7.51 times less return on investment than WNS Holdings. But when comparing it to its historical volatility, CSP Inc is 1.44 times less risky than WNS Holdings. It trades about 0.06 of its potential returns per unit of risk. WNS Holdings is currently generating about 0.3 of returns per unit of risk over similar time horizon. If you would invest 4,728 in WNS Holdings on October 26, 2024 and sell it today you would earn a total of 1,546 from holding WNS Holdings or generate 32.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CSP Inc vs. WNS Holdings
Performance |
| Timeline |
| CSP Inc |
| WNS Holdings |
CSP and WNS Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CSP and WNS Holdings
The main advantage of trading using opposite CSP and WNS Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CSP 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.| CSP vs. The Hackett Group | CSP vs. Nayax | CSP vs. Formula Systems 1985 | CSP vs. Information Services Group |
| 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |