Correlation Between WNS Holdings and Mastech Holdings

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

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

Diversification Opportunities for WNS Holdings and Mastech Holdings

-0.3

Correlation Coefficient

WNS Holdings  Mastech Holdings

Very good diversification

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

Pair Corralation between WNS Holdings and Mastech Holdings

Considering the 90-day investment horizon WNS Holdings is expected to under-perform the Mastech Holdings. In addition to that, WNS Holdings is 1.78 times more volatile than Mastech Holdings. It trades about -0.14 of its total potential returns per unit of risk. Mastech Holdings is currently generating about -0.03 per unit of volatility. If you would invest  840.00  in Mastech Holdings on February 3, 2024 and sell it today you would lose (30.00) from holding Mastech Holdings or give up 3.57% of portfolio value over 90 days.

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

WNS Holdings  vs.  Mastech Holdings

WNS Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days WNS Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in June 2024. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Mastech Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Mastech Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong technical indicators, Mastech Holdings is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with WNS Holdings and Mastech Holdings

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

The idea behind WNS Holdings and Mastech 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 Global Correlations module to find global opportunities by holding instruments from different markets.