Correlation Between WNS Holdings and Chindata Group
Can any of the company-specific risk be diversified away by investing in both WNS Holdings and Chindata Group 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 Chindata Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WNS Holdings and Chindata Group Holdings, you can compare the effects of market volatilities on WNS Holdings and Chindata Group 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 Chindata Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of WNS Holdings and Chindata Group.
Diversification Opportunities for WNS Holdings and Chindata Group
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between WNS and Chindata is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding WNS Holdings and Chindata Group Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chindata Group Holdings 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 Chindata Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chindata Group Holdings has no effect on the direction of WNS Holdings i.e., WNS Holdings and Chindata Group go up and down completely randomly.
Pair Corralation between WNS Holdings and Chindata Group
Considering the 90-day investment horizon WNS Holdings is expected to under-perform the Chindata Group. But the stock apears to be less risky and, when comparing its historical volatility, WNS Holdings is 1.45 times less risky than Chindata Group. The stock trades about -0.04 of its potential returns per unit of risk. The Chindata Group Holdings is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 855.00 in Chindata Group Holdings on October 20, 2024 and sell it today you would lose (65.00) from holding Chindata Group Holdings or give up 7.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 24.65% |
| Values | Daily Returns |
WNS Holdings vs. Chindata Group Holdings
Performance |
| Timeline |
| WNS Holdings |
| Chindata Group Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
WNS Holdings and Chindata Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WNS Holdings and Chindata Group
The main advantage of trading using opposite WNS Holdings and Chindata Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WNS Holdings position performs unexpectedly, Chindata Group 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 Chindata Group will offset losses from the drop in Chindata Group's long position.| WNS Holdings vs. Genpact Limited | WNS Holdings vs. ASGN Inc | WNS Holdings vs. CACI International | WNS Holdings vs. ExlService Holdings |
| Chindata Group vs. GDS Holdings | Chindata Group vs. ExlService Holdings | Chindata Group vs. Gartner | Chindata Group vs. VNET Group DRC |
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 Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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