Correlation Between WNS Holdings and StarTek
Can any of the company-specific risk be diversified away by investing in both WNS Holdings and StarTek 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 StarTek into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WNS Holdings and StarTek, you can compare the effects of market volatilities on WNS Holdings and StarTek 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 StarTek. Check out your portfolio center. Please also check ongoing floating volatility patterns of WNS Holdings and StarTek.
Diversification Opportunities for WNS Holdings and StarTek
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between WNS and StarTek is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding WNS Holdings and StarTek in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on StarTek 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 StarTek. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of StarTek has no effect on the direction of WNS Holdings i.e., WNS Holdings and StarTek go up and down completely randomly.
Pair Corralation between WNS Holdings and StarTek
If you would invest 4,841 in WNS Holdings on August 28, 2024 and sell it today you would earn a total of 459.00 from holding WNS Holdings or generate 9.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 4.76% |
| Values | Daily Returns |
WNS Holdings vs. StarTek
Performance |
| Timeline |
| WNS Holdings |
| StarTek |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
WNS Holdings and StarTek Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WNS Holdings and StarTek
The main advantage of trading using opposite WNS Holdings and StarTek positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WNS Holdings position performs unexpectedly, StarTek 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 StarTek will offset losses from the drop in StarTek's long position.| WNS Holdings vs. Genpact Limited | WNS Holdings vs. ASGN Inc | WNS Holdings vs. CACI International | WNS Holdings 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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