Correlation Between WNS Holdings and Grid Dynamics
Can any of the company-specific risk be diversified away by investing in both WNS Holdings and Grid Dynamics 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 Grid Dynamics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WNS Holdings and Grid Dynamics Holdings, you can compare the effects of market volatilities on WNS Holdings and Grid Dynamics 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 Grid Dynamics. Check out your portfolio center. Please also check ongoing floating volatility patterns of WNS Holdings and Grid Dynamics.
Diversification Opportunities for WNS Holdings and Grid Dynamics
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between WNS and Grid is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding WNS Holdings and Grid Dynamics Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grid Dynamics 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 Grid Dynamics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grid Dynamics Holdings has no effect on the direction of WNS Holdings i.e., WNS Holdings and Grid Dynamics go up and down completely randomly.
Pair Corralation between WNS Holdings and Grid Dynamics
Considering the 90-day investment horizon WNS Holdings is expected to generate 1.72 times less return on investment than Grid Dynamics. But when comparing it to its historical volatility, WNS Holdings is 1.5 times less risky than Grid Dynamics. It trades about 0.15 of its potential returns per unit of risk. Grid Dynamics Holdings is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 1,544 in Grid Dynamics Holdings on August 24, 2024 and sell it today you would earn a total of 227.00 from holding Grid Dynamics Holdings or generate 14.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
WNS Holdings vs. Grid Dynamics Holdings
Performance |
| Timeline |
| WNS Holdings |
| Grid Dynamics Holdings |
WNS Holdings and Grid Dynamics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WNS Holdings and Grid Dynamics
The main advantage of trading using opposite WNS Holdings and Grid Dynamics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WNS Holdings position performs unexpectedly, Grid Dynamics 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 Grid Dynamics will offset losses from the drop in Grid Dynamics' long position.| WNS Holdings vs. Genpact Limited | WNS Holdings vs. ASGN Inc | WNS Holdings vs. CACI International | WNS Holdings vs. ExlService Holdings |
| Grid Dynamics vs. ExlService Holdings | Grid Dynamics vs. ASGN Inc | Grid Dynamics vs. WNS Holdings | Grid Dynamics vs. Gartner |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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