Correlation Between ASGN and WNS Holdings

Can any of the company-specific risk be diversified away by investing in both ASGN and WNS Holdings 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 ASGN and WNS Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between ASGN Inc and WNS Holdings, you can compare the effects of market volatilities on ASGN and WNS Holdings 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 ASGN with a short position of WNS Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of ASGN and WNS Holdings.

Diversification Opportunities for ASGN and WNS Holdings

-0.47

Correlation Coefficient

ASGN  WNS Holdings

Very good diversification

The 3 months correlation between ASGN and WNS is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding ASGN Inc and WNS Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WNS Holdings and ASGN 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 ASGN Inc are associated (or correlated) with WNS Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WNS Holdings has no effect on the direction of ASGN i.e., ASGN and WNS Holdings go up and down completely randomly.

Pair Corralation between ASGN and WNS Holdings

Given the investment horizon of 90 days ASGN Inc is expected to under-perform the WNS Holdings. But the stock apears to be less risky and, when comparing its historical volatility, ASGN Inc is 1.59 times less risky than WNS Holdings. The stock trades about -0.19 of its potential returns per unit of risk. The WNS Holdings is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest  4,679  in WNS Holdings on December 27, 2024 and sell it today you would earn a total of  1,657  from holding WNS Holdings or generate 35.41% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

ASGN Inc  vs.  WNS Holdings

ASGN Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days ASGN Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's technical and fundamental indicators remain very healthy which may send shares a bit higher in April 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

WNS Holdings

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in WNS Holdings are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile basic indicators, WNS Holdings unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with ASGN and WNS Holdings

The main advantage of trading using opposite ASGN and WNS Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ASGN position performs unexpectedly, WNS Holdings 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 WNS Holdings will offset losses from the drop in WNS Holdings' long position.

The idea behind ASGN Inc and WNS Holdings pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.