Correlation Between ExlService Holdings and WNS Holdings
Can any of the company-specific risk be diversified away by investing in both ExlService Holdings 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 ExlService Holdings and WNS Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ExlService Holdings and WNS Holdings, you can compare the effects of market volatilities on ExlService Holdings 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 ExlService Holdings with a short position of WNS Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of ExlService Holdings and WNS Holdings.
Diversification Opportunities for ExlService Holdings and WNS Holdings
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between ExlService and WNS is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding ExlService Holdings and WNS Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WNS Holdings and ExlService 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 ExlService Holdings 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 ExlService Holdings i.e., ExlService Holdings and WNS Holdings go up and down completely randomly.
Pair Corralation between ExlService Holdings and WNS Holdings
Given the investment horizon of 90 days ExlService Holdings is expected to generate 0.53 times more return on investment than WNS Holdings. However, ExlService Holdings is 1.88 times less risky than WNS Holdings. It trades about -0.02 of its potential returns per unit of risk. WNS Holdings is currently generating about -0.08 per unit of risk. If you would invest 3,143 in ExlService Holdings on February 8, 2024 and sell it today you would lose (73.00) from holding ExlService Holdings or give up 2.32% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
ExlService Holdings vs. WNS Holdings
Performance |
Timeline |
ExlService Holdings |
WNS Holdings |
ExlService Holdings and WNS Holdings Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with ExlService Holdings and WNS Holdings
The main advantage of trading using opposite ExlService Holdings and WNS Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ExlService Holdings 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.ExlService Holdings vs. International Business Machines | ExlService Holdings vs. ASGN Inc | ExlService Holdings vs. CACI International | ExlService Holdings vs. CDW Corp |
WNS Holdings vs. International Business Machines | WNS Holdings vs. ASGN Inc | WNS Holdings vs. CACI International | WNS Holdings vs. CDW Corp |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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