Correlation Between Bitcoin Depot and Genpact
Can any of the company-specific risk be diversified away by investing in both Bitcoin Depot 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 Bitcoin Depot and Genpact into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bitcoin Depot and Genpact Limited, you can compare the effects of market volatilities on Bitcoin Depot 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 Bitcoin Depot with a short position of Genpact. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bitcoin Depot and Genpact.
Diversification Opportunities for Bitcoin Depot and Genpact
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Bitcoin and Genpact is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Bitcoin Depot and Genpact Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genpact Limited and Bitcoin Depot 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 Bitcoin Depot 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 Bitcoin Depot i.e., Bitcoin Depot and Genpact go up and down completely randomly.
Pair Corralation between Bitcoin Depot and Genpact
Considering the 90-day investment horizon Bitcoin Depot is expected to generate 5.35 times more return on investment than Genpact. However, Bitcoin Depot is 5.35 times more volatile than Genpact Limited. It trades about 0.13 of its potential returns per unit of risk. Genpact Limited is currently generating about 0.35 per unit of risk. If you would invest 147.00 in Bitcoin Depot on September 4, 2024 and sell it today you would earn a total of 36.00 from holding Bitcoin Depot or generate 24.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bitcoin Depot vs. Genpact Limited
Performance |
| Timeline |
| Bitcoin Depot |
| Genpact Limited |
Bitcoin Depot and Genpact Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bitcoin Depot and Genpact
The main advantage of trading using opposite Bitcoin Depot and Genpact positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bitcoin Depot 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.| Bitcoin Depot vs. Genpact Limited | Bitcoin Depot vs. Broadridge Financial Solutions | Bitcoin Depot vs. BrightView Holdings | Bitcoin Depot vs. First Advantage 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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