Correlation Between Genpact and Orsted A/S
Can any of the company-specific risk be diversified away by investing in both Genpact and Orsted A/S 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 Orsted A/S into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Genpact Limited and Orsted AS ADR, you can compare the effects of market volatilities on Genpact and Orsted A/S 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 Orsted A/S. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genpact and Orsted A/S.
Diversification Opportunities for Genpact and Orsted A/S
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Genpact and Orsted is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Genpact Limited and Orsted AS ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Orsted AS ADR 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 Orsted A/S. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Orsted AS ADR has no effect on the direction of Genpact i.e., Genpact and Orsted A/S go up and down completely randomly.
Pair Corralation between Genpact and Orsted A/S
Taking into account the 90-day investment horizon Genpact Limited is expected to generate 0.68 times more return on investment than Orsted A/S. However, Genpact Limited is 1.46 times less risky than Orsted A/S. It trades about 0.39 of its potential returns per unit of risk. Orsted AS ADR is currently generating about -0.18 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 834.00 from holding Genpact Limited or generate 21.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Genpact Limited vs. Orsted AS ADR
Performance |
| Timeline |
| Genpact Limited |
| Orsted AS ADR |
Genpact and Orsted A/S Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Genpact and Orsted A/S
The main advantage of trading using opposite Genpact and Orsted A/S positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genpact position performs unexpectedly, Orsted A/S 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 Orsted A/S will offset losses from the drop in Orsted A/S's long position.| Genpact vs. Oneconnect Financial Technology | Genpact vs. Global Business Travel | Genpact vs. Alight Inc | Genpact vs. CS Disco LLC |
| Orsted A/S vs. Brookfield Renewable Partners | Orsted A/S vs. Brookfield Renewable Corp | Orsted A/S vs. Clearway Energy Class | Orsted A/S vs. Atlantica Sustainable Infrastructure |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |