Correlation Between WNS Holdings and Flint Telecom
Can any of the company-specific risk be diversified away by investing in both WNS Holdings and Flint Telecom 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 Flint Telecom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WNS Holdings and Flint Telecom Group, you can compare the effects of market volatilities on WNS Holdings and Flint Telecom 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 Flint Telecom. Check out your portfolio center. Please also check ongoing floating volatility patterns of WNS Holdings and Flint Telecom.
Diversification Opportunities for WNS Holdings and Flint Telecom
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between WNS and Flint is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding WNS Holdings and Flint Telecom Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Flint Telecom Group 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 Flint Telecom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Flint Telecom Group has no effect on the direction of WNS Holdings i.e., WNS Holdings and Flint Telecom go up and down completely randomly.
Pair Corralation between WNS Holdings and Flint Telecom
Considering the 90-day investment horizon WNS Holdings is expected to generate 0.4 times more return on investment than Flint Telecom. However, WNS Holdings is 2.53 times less risky than Flint Telecom. It trades about 0.15 of its potential returns per unit of risk. Flint Telecom Group is currently generating about -0.09 per unit of risk. 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 | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
WNS Holdings vs. Flint Telecom Group
Performance |
| Timeline |
| WNS Holdings |
| Flint Telecom Group |
WNS Holdings and Flint Telecom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WNS Holdings and Flint Telecom
The main advantage of trading using opposite WNS Holdings and Flint Telecom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WNS Holdings position performs unexpectedly, Flint Telecom 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 Flint Telecom will offset losses from the drop in Flint Telecom's long position.| WNS Holdings vs. Genpact Limited | WNS Holdings vs. ASGN Inc | WNS Holdings vs. CACI International | WNS Holdings vs. ExlService Holdings |
| Flint Telecom vs. Castellum | Flint Telecom vs. Datametrex AI Limited | Flint Telecom vs. TTEC Holdings | Flint Telecom vs. CLPS Inc |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Stocks Directory Find actively traded stocks across global markets |