Correlation Between CACI International and Genpact
Can any of the company-specific risk be diversified away by investing in both CACI International 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 CACI International and Genpact into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CACI International and Genpact Limited, you can compare the effects of market volatilities on CACI International 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 CACI International with a short position of Genpact. Check out your portfolio center. Please also check ongoing floating volatility patterns of CACI International and Genpact.
Diversification Opportunities for CACI International and Genpact
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CACI and Genpact is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CACI International and Genpact Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genpact Limited and CACI International 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 CACI International 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 CACI International i.e., CACI International and Genpact go up and down completely randomly.
Pair Corralation between CACI International and Genpact
Given the investment horizon of 90 days CACI International is expected to under-perform the Genpact. In addition to that, CACI International is 1.23 times more volatile than Genpact Limited. It trades about -0.23 of its total potential returns per unit of risk. Genpact Limited is currently generating about 0.37 per unit of volatility. If you would invest 3,830 in Genpact Limited on August 27, 2024 and sell it today you would earn a total of 789.00 from holding Genpact Limited or generate 20.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CACI International vs. Genpact Limited
Performance |
| Timeline |
| CACI International |
| Genpact Limited |
CACI International and Genpact Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CACI International and Genpact
The main advantage of trading using opposite CACI International and Genpact positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CACI International 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.| CACI International vs. Leidos Holdings | CACI International vs. Parsons Corp | CACI International vs. ASGN Inc | CACI International vs. ExlService Holdings |
| 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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