Correlation Between Thoughtworks Holding and Concentrix
Can any of the company-specific risk be diversified away by investing in both Thoughtworks Holding and Concentrix 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 Thoughtworks Holding and Concentrix into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thoughtworks Holding and Concentrix, you can compare the effects of market volatilities on Thoughtworks Holding and Concentrix 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 Thoughtworks Holding with a short position of Concentrix. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thoughtworks Holding and Concentrix.
Diversification Opportunities for Thoughtworks Holding and Concentrix
-0.9 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Thoughtworks and Concentrix is -0.9. Overlapping area represents the amount of risk that can be diversified away by holding Thoughtworks Holding and Concentrix in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Concentrix and Thoughtworks Holding 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 Thoughtworks Holding are associated (or correlated) with Concentrix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Concentrix has no effect on the direction of Thoughtworks Holding i.e., Thoughtworks Holding and Concentrix go up and down completely randomly.
Pair Corralation between Thoughtworks Holding and Concentrix
Given the investment horizon of 90 days Thoughtworks Holding is expected to generate 0.22 times more return on investment than Concentrix. However, Thoughtworks Holding is 4.51 times less risky than Concentrix. It trades about 0.03 of its potential returns per unit of risk. Concentrix is currently generating about -0.18 per unit of risk. 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 |
Thoughtworks Holding vs. Concentrix
Performance |
| Timeline |
| Thoughtworks Holding |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
| Concentrix |
Thoughtworks Holding and Concentrix Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thoughtworks Holding and Concentrix
The main advantage of trading using opposite Thoughtworks Holding and Concentrix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thoughtworks Holding position performs unexpectedly, Concentrix 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 Concentrix will offset losses from the drop in Concentrix's long position.| Thoughtworks Holding vs. ExlService Holdings | Thoughtworks Holding vs. Genpact Limited | Thoughtworks Holding vs. ASGN Inc | Thoughtworks Holding vs. TTEC Holdings |
| Concentrix vs. Genpact Limited | Concentrix vs. ExlService Holdings | Concentrix vs. Science Applications International | Concentrix vs. CLARIVATE PLC |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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