Correlation Between WNS Holdings and CACI International
Can any of the company-specific risk be diversified away by investing in both WNS Holdings and CACI International 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 WNS Holdings and CACI International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WNS Holdings and CACI International, you can compare the effects of market volatilities on WNS Holdings and CACI International 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 WNS Holdings with a short position of CACI International. Check out your portfolio center. Please also check ongoing floating volatility patterns of WNS Holdings and CACI International.
Diversification Opportunities for WNS Holdings and CACI International
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between WNS and CACI is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding WNS Holdings and CACI International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CACI International and WNS Holdings 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 WNS Holdings are associated (or correlated) with CACI International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CACI International has no effect on the direction of WNS Holdings i.e., WNS Holdings and CACI International go up and down completely randomly.
Pair Corralation between WNS Holdings and CACI International
Considering the 90-day investment horizon WNS Holdings is expected to under-perform the CACI International. In addition to that, WNS Holdings is 1.63 times more volatile than CACI International. It trades about -0.01 of its total potential returns per unit of risk. CACI International is currently generating about 0.09 per unit of volatility. If you would invest 37,485 in CACI International on August 27, 2024 and sell it today you would earn a total of 9,393 from holding CACI International or generate 25.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
WNS Holdings vs. CACI International
Performance |
| Timeline |
| WNS Holdings |
| CACI International |
WNS Holdings and CACI International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WNS Holdings and CACI International
The main advantage of trading using opposite WNS Holdings and CACI International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WNS Holdings position performs unexpectedly, CACI International 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 CACI International will offset losses from the drop in CACI International's long position.| WNS Holdings vs. Oneconnect Financial Technology | WNS Holdings vs. Global Business Travel | WNS Holdings vs. Alight Inc | WNS Holdings vs. CS Disco LLC |
| CACI International vs. Leidos Holdings | CACI International vs. Parsons Corp | CACI International vs. ASGN Inc | CACI International 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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