Correlation Between Genpact and Accenture Plc
Can any of the company-specific risk be diversified away by investing in both Genpact and Accenture Plc 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 Genpact and Accenture Plc into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Genpact Limited and Accenture plc, you can compare the effects of market volatilities on Genpact and Accenture Plc 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 Genpact with a short position of Accenture Plc. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genpact and Accenture Plc.
Diversification Opportunities for Genpact and Accenture Plc
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Genpact and Accenture is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Genpact Limited and Accenture plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Accenture plc and Genpact 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 Genpact Limited are associated (or correlated) with Accenture Plc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Accenture plc has no effect on the direction of Genpact i.e., Genpact and Accenture Plc go up and down completely randomly.
Pair Corralation between Genpact and Accenture Plc
Taking into account the 90-day investment horizon Genpact Limited is expected to generate 1.48 times more return on investment than Accenture Plc. However, Genpact is 1.48 times more volatile than Accenture plc. It trades about 0.37 of its potential returns per unit of risk. Accenture plc is currently generating about -0.01 per unit of risk. 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 | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Genpact Limited vs. Accenture plc
Performance |
| Timeline |
| Genpact Limited |
| Accenture plc |
Genpact and Accenture Plc Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Genpact and Accenture Plc
The main advantage of trading using opposite Genpact and Accenture Plc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genpact position performs unexpectedly, Accenture Plc 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 Accenture Plc will offset losses from the drop in Accenture Plc's long position.| Genpact vs. Oneconnect Financial Technology | Genpact vs. Global Business Travel | Genpact vs. Alight Inc | Genpact vs. CS Disco LLC |
| Accenture Plc vs. Globant SA | Accenture Plc vs. Concentrix | Accenture Plc vs. Cognizant Technology Solutions | Accenture Plc vs. CDW Corp |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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