Correlation Between Genpact and AgileThought
Can any of the company-specific risk be diversified away by investing in both Genpact and AgileThought 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 AgileThought into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Genpact Limited and AgileThought, you can compare the effects of market volatilities on Genpact and AgileThought 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 AgileThought. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genpact and AgileThought.
Diversification Opportunities for Genpact and AgileThought
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Genpact and AgileThought is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Genpact Limited and AgileThought in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AgileThought 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 AgileThought. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AgileThought has no effect on the direction of Genpact i.e., Genpact and AgileThought go up and down completely randomly.
Pair Corralation between Genpact and AgileThought
Taking into account the 90-day investment horizon Genpact is expected to generate 8.33 times less return on investment than AgileThought. But when comparing it to its historical volatility, Genpact Limited is 12.13 times less risky than AgileThought. It trades about 0.01 of its potential returns per unit of risk. AgileThought is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 38.00 in AgileThought on September 2, 2024 and sell it today you would lose (31.00) from holding AgileThought or give up 81.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 19.35% |
| Values | Daily Returns |
Genpact Limited vs. AgileThought
Performance |
| Timeline |
| Genpact Limited |
| AgileThought |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Genpact and AgileThought Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Genpact and AgileThought
The main advantage of trading using opposite Genpact and AgileThought positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genpact position performs unexpectedly, AgileThought 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 AgileThought will offset losses from the drop in AgileThought's long position.| Genpact vs. WNS Holdings | Genpact vs. ASGN Inc | Genpact vs. CACI International | Genpact vs. ExlService Holdings |
| AgileThought vs. Katapult Holdings Equity | AgileThought vs. Arqit Quantum Warrants | AgileThought vs. AvePoint |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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