Correlation Between WNS Holdings and Concentrix

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

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

Diversification Opportunities for WNS Holdings and Concentrix

-0.3

Correlation Coefficient

WNS Holdings  Concentrix

Very good diversification

The 3 months correlation between WNS and Concentrix is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding WNS Holdings and Concentrix in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Concentrix 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 Concentrix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Concentrix has no effect on the direction of WNS Holdings i.e., WNS Holdings and Concentrix go up and down completely randomly.

Pair Corralation between WNS Holdings and Concentrix

Considering the 90-day investment horizon WNS Holdings is expected to generate 7.81 times less return on investment than Concentrix. But when comparing it to its historical volatility, WNS Holdings is 1.3 times less risky than Concentrix. It trades about 0.08 of its potential returns per unit of risk. Concentrix is currently generating about 0.47 of returns per unit of risk over similar time horizon. If you would invest  4,038  in Concentrix on October 20, 2024 and sell it today you would earn a total of  858.00  from holding Concentrix or generate 21.25% 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.  Concentrix

WNS Holdings

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in WNS Holdings are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, WNS Holdings is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Concentrix

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Concentrix are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of rather fragile basic indicators, Concentrix may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with WNS Holdings and Concentrix

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

The idea behind WNS Holdings and Concentrix 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.