Correlation Between WNS Holdings and Trip Group

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

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

Diversification Opportunities for WNS Holdings and Trip Group

0.1

Correlation Coefficient

WNS Holdings  Trip Group

Average diversification

The 3 months correlation between WNS and Trip is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding WNS Holdings and Trip Group Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trip Group 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 Trip Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trip Group has no effect on the direction of WNS Holdings i.e., WNS Holdings and Trip Group go up and down completely randomly.

Pair Corralation between WNS Holdings and Trip Group

Considering the 90-day investment horizon WNS Holdings is expected to generate 1.19 times more return on investment than Trip Group. However, WNS Holdings is 1.19 times more volatile than Trip Group Ltd. It trades about 0.16 of its potential returns per unit of risk. Trip Group Ltd is currently generating about 0.0 per unit of risk. If you would invest  5,916  in WNS Holdings on May 6, 2025 and sell it today you would earn a total of  1,566  from holding WNS Holdings or generate 26.47% return on investment over 90 days.

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

WNS Holdings  vs.  Trip Group Ltd

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 uncertain basic indicators, WNS Holdings unveiled solid returns over the last few months and may actually be approaching a breakup point.

Trip Group

Risk-Adjusted Performance

Very Weak

Over the last 90 days Trip Group Ltd has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Trip Group is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with WNS Holdings and Trip Group

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

The idea behind WNS Holdings and Trip Group Ltd 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.