Correlation Between Genpact and Atos Origin
Can any of the company-specific risk be diversified away by investing in both Genpact and Atos Origin 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 Atos Origin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Genpact Limited and Atos Origin SA, you can compare the effects of market volatilities on Genpact and Atos Origin 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 Atos Origin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genpact and Atos Origin.
Diversification Opportunities for Genpact and Atos Origin
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Genpact and Atos is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Genpact Limited and Atos Origin SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atos Origin SA 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 Atos Origin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atos Origin SA has no effect on the direction of Genpact i.e., Genpact and Atos Origin go up and down completely randomly.
Pair Corralation between Genpact and Atos Origin
Taking into account the 90-day investment horizon Genpact is expected to generate 1.97 times less return on investment than Atos Origin. But when comparing it to its historical volatility, Genpact Limited is 3.3 times less risky than Atos Origin. It trades about 0.37 of its potential returns per unit of risk. Atos Origin SA is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 13.00 in Atos Origin SA on August 31, 2024 and sell it today you would earn a total of 5.00 from holding Atos Origin SA or generate 38.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Genpact Limited vs. Atos Origin SA
Performance |
| Timeline |
| Genpact Limited |
| Atos Origin SA |
Genpact and Atos Origin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Genpact and Atos Origin
The main advantage of trading using opposite Genpact and Atos Origin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genpact position performs unexpectedly, Atos Origin 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 Atos Origin will offset losses from the drop in Atos Origin's long position.| Genpact vs. WNS Holdings | Genpact vs. ASGN Inc | Genpact vs. CACI International | Genpact vs. ExlService Holdings |
| Atos Origin vs. The Travelers Companies | Atos Origin vs. Walt Disney | Atos Origin vs. Home Depot | Atos Origin vs. Procter Gamble |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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