Correlation Between Brinks and Genpact
Can any of the company-specific risk be diversified away by investing in both Brinks 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 Brinks and Genpact into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Brinks Company and Genpact Limited, you can compare the effects of market volatilities on Brinks 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 Brinks with a short position of Genpact. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brinks and Genpact.
Diversification Opportunities for Brinks and Genpact
Pay attention - limited upside
The 3 months correlation between Brinks and Genpact is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding Brinks Company and Genpact Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genpact Limited and Brinks 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 Brinks Company 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 Brinks i.e., Brinks and Genpact go up and down completely randomly.
Pair Corralation between Brinks and Genpact
Considering the 90-day investment horizon Brinks Company is expected to generate 1.85 times more return on investment than Genpact. However, Brinks is 1.85 times more volatile than Genpact Limited. It trades about 0.03 of its potential returns per unit of risk. Genpact Limited is currently generating about -0.02 per unit of risk. If you would invest 9,384 in Brinks Company on September 15, 2024 and sell it today you would earn a total of 78.00 from holding Brinks Company or generate 0.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Brinks Company vs. Genpact Limited
Performance |
| Timeline |
| Brinks Company |
| Genpact Limited |
Brinks and Genpact Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Brinks and Genpact
The main advantage of trading using opposite Brinks and Genpact positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brinks 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.| Brinks vs. MSA Safety | Brinks vs. Resideo Technologies | Brinks vs. Mistras Group | Brinks vs. NL Industries |
| Genpact vs. Oneconnect Financial Technology | Genpact vs. Global Business Travel | Genpact vs. Alight Inc | Genpact vs. CS Disco LLC |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |