Correlation Between Atos Origin and Genpact
Can any of the company-specific risk be diversified away by investing in both Atos Origin and Genpact 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 Atos Origin and Genpact into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atos Origin SA and Genpact Limited, you can compare the effects of market volatilities on Atos Origin and Genpact 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 Atos Origin with a short position of Genpact. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atos Origin and Genpact.
Diversification Opportunities for Atos Origin and Genpact
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Atos and Genpact is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Atos Origin SA and Genpact Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genpact Limited and Atos Origin 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 Atos Origin SA are associated (or correlated) with Genpact. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Genpact Limited has no effect on the direction of Atos Origin i.e., Atos Origin and Genpact go up and down completely randomly.
Pair Corralation between Atos Origin and Genpact
Assuming the 90 days horizon Atos Origin SA is expected to generate 3.39 times more return on investment than Genpact. However, Atos Origin is 3.39 times more volatile than Genpact Limited. It trades about 0.28 of its potential returns per unit of risk. Genpact Limited is currently generating about 0.37 per unit of risk. If you would invest 13.00 in Atos Origin SA on September 2, 2024 and sell it today you would earn a total of 7.00 from holding Atos Origin SA or generate 53.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Atos Origin SA vs. Genpact Limited
Performance |
| Timeline |
| Atos Origin SA |
| Genpact Limited |
Atos Origin and Genpact Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atos Origin and Genpact
The main advantage of trading using opposite Atos Origin and Genpact positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atos Origin position performs unexpectedly, Genpact 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 Genpact will offset losses from the drop in Genpact's long position.| Atos Origin vs. Appen Limited | Atos Origin vs. Aurora Innovation | Atos Origin vs. Atos SE | Atos Origin vs. Deveron Corp |
| Genpact vs. WNS Holdings | Genpact vs. ASGN Inc | Genpact vs. CACI International | Genpact vs. ExlService Holdings |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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