Correlation Between WNS Holdings and Lightbridge Corp
Can any of the company-specific risk be diversified away by investing in both WNS Holdings and Lightbridge Corp 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 Lightbridge Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WNS Holdings and Lightbridge Corp, you can compare the effects of market volatilities on WNS Holdings and Lightbridge Corp 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 Lightbridge Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of WNS Holdings and Lightbridge Corp.
Diversification Opportunities for WNS Holdings and Lightbridge Corp
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between WNS and Lightbridge is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding WNS Holdings and Lightbridge Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lightbridge Corp 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 Lightbridge Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lightbridge Corp has no effect on the direction of WNS Holdings i.e., WNS Holdings and Lightbridge Corp go up and down completely randomly.
Pair Corralation between WNS Holdings and Lightbridge Corp
Considering the 90-day investment horizon WNS Holdings is expected to generate 0.2 times more return on investment than Lightbridge Corp. However, WNS Holdings is 4.96 times less risky than Lightbridge Corp. It trades about 0.15 of its potential returns per unit of risk. Lightbridge Corp is currently generating about -0.08 per unit of risk. If you would invest 4,841 in WNS Holdings on August 27, 2024 and sell it today you would earn a total of 366.00 from holding WNS Holdings or generate 7.56% 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. Lightbridge Corp
Performance |
| Timeline |
| WNS Holdings |
| Lightbridge Corp |
WNS Holdings and Lightbridge Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WNS Holdings and Lightbridge Corp
The main advantage of trading using opposite WNS Holdings and Lightbridge Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WNS Holdings position performs unexpectedly, Lightbridge Corp 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 Lightbridge Corp will offset losses from the drop in Lightbridge Corp's long position.| WNS Holdings vs. Genpact Limited | WNS Holdings vs. ASGN Inc | WNS Holdings vs. CACI International | WNS Holdings vs. ExlService Holdings |
| Lightbridge Corp vs. Espey Mfg Electronics | Lightbridge Corp vs. Hayward Holdings | Lightbridge Corp vs. Kimball Electronics | Lightbridge Corp vs. NeoVolta Warrant |
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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