Correlation Between Dun Bradstreet and Genpact
Can any of the company-specific risk be diversified away by investing in both Dun Bradstreet 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 Dun Bradstreet and Genpact into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dun Bradstreet Holdings and Genpact Limited, you can compare the effects of market volatilities on Dun Bradstreet 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 Dun Bradstreet with a short position of Genpact. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dun Bradstreet and Genpact.
Diversification Opportunities for Dun Bradstreet and Genpact
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Dun and Genpact is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Dun Bradstreet Holdings and Genpact Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genpact Limited and Dun Bradstreet 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 Dun Bradstreet Holdings 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 Dun Bradstreet i.e., Dun Bradstreet and Genpact go up and down completely randomly.
Pair Corralation between Dun Bradstreet and Genpact
Considering the 90-day investment horizon Dun Bradstreet is expected to generate 1.51 times less return on investment than Genpact. In addition to that, Dun Bradstreet is 1.13 times more volatile than Genpact Limited. It trades about 0.05 of its total potential returns per unit of risk. Genpact Limited is currently generating about 0.08 per unit of volatility. If you would invest 3,339 in Genpact Limited on August 26, 2024 and sell it today you would earn a total of 1,280 from holding Genpact Limited or generate 38.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dun Bradstreet Holdings vs. Genpact Limited
Performance |
| Timeline |
| Dun Bradstreet Holdings |
| Genpact Limited |
Dun Bradstreet and Genpact Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dun Bradstreet and Genpact
The main advantage of trading using opposite Dun Bradstreet and Genpact positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dun Bradstreet 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.| Dun Bradstreet vs. FactSet Research Systems | Dun Bradstreet vs. Moodys | Dun Bradstreet vs. MSCI Inc | Dun Bradstreet vs. Intercontinental Exchange |
| 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |