Correlation Between Genpact and C3is
Can any of the company-specific risk be diversified away by investing in both Genpact and C3is 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 C3is into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Genpact Limited and C3is Inc, you can compare the effects of market volatilities on Genpact and C3is 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 C3is. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genpact and C3is.
Diversification Opportunities for Genpact and C3is
Excellent diversification
The 3 months correlation between Genpact and C3is is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Genpact Limited and C3is Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on C3is Inc 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 C3is. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of C3is Inc has no effect on the direction of Genpact i.e., Genpact and C3is go up and down completely randomly.
Pair Corralation between Genpact and C3is
Taking into account the 90-day investment horizon Genpact Limited is expected to generate 0.59 times more return on investment than C3is. However, Genpact Limited is 1.68 times less risky than C3is. It trades about 0.24 of its potential returns per unit of risk. C3is Inc is currently generating about -0.35 per unit of risk. If you would invest 4,638 in Genpact Limited on November 28, 2024 and sell it today you would earn a total of 650.00 from holding Genpact Limited or generate 14.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Genpact Limited vs. C3is Inc
Performance |
| Timeline |
| Genpact Limited |
| C3is Inc |
Genpact and C3is Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Genpact and C3is
The main advantage of trading using opposite Genpact and C3is positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genpact position performs unexpectedly, C3is 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 C3is will offset losses from the drop in C3is' long position.| Genpact vs. WNS Holdings | Genpact vs. ASGN Inc | Genpact vs. CACI International | Genpact vs. ExlService Holdings |
| C3is vs. Sun Country Airlines | C3is vs. Birks Group | C3is vs. Hudson Technologies | C3is vs. Academy Sports Outdoors |
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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