Correlation Between Teamlease Services and Alight

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Can any of the company-specific risk be diversified away by investing in both Teamlease Services and Alight 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 Teamlease Services and Alight into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Teamlease Services Limited and Alight Inc, you can compare the effects of market volatilities on Teamlease Services and Alight 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 Teamlease Services with a short position of Alight. Check out your portfolio center. Please also check ongoing floating volatility patterns of Teamlease Services and Alight.

Diversification Opportunities for Teamlease Services and Alight

0.81
  Correlation Coefficient

Very poor diversification

The 3 months correlation between Teamlease and Alight is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Teamlease Services Limited and Alight Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alight Inc and Teamlease Services 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 Teamlease Services Limited are associated (or correlated) with Alight. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alight Inc has no effect on the direction of Teamlease Services i.e., Teamlease Services and Alight go up and down completely randomly.

Pair Corralation between Teamlease Services and Alight

Assuming the 90 days trading horizon Teamlease Services Limited is expected to generate 0.41 times more return on investment than Alight. However, Teamlease Services Limited is 2.46 times less risky than Alight. It trades about -0.13 of its potential returns per unit of risk. Alight Inc is currently generating about -0.27 per unit of risk. If you would invest  182,260  in Teamlease Services Limited on August 31, 2025 and sell it today you would lose (17,530) from holding Teamlease Services Limited or give up 9.62% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthStrong
Accuracy98.44%
ValuesDaily Returns

Teamlease Services Limited  vs.  Alight Inc

 Performance 
       Timeline  
Teamlease Services 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Teamlease Services Limited has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest unsteady performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.
Alight Inc 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Alight Inc 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 forward indicators remain comparatively stable which may send shares a bit higher in December 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Teamlease Services and Alight Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Teamlease Services and Alight

The main advantage of trading using opposite Teamlease Services and Alight positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Teamlease Services position performs unexpectedly, Alight 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 Alight will offset losses from the drop in Alight's long position.
The idea behind Teamlease Services Limited and Alight Inc 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.
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.

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