Correlation Between Genpact and Fidelity National
Can any of the company-specific risk be diversified away by investing in both Genpact and Fidelity National 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 Fidelity National into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Genpact Limited and Fidelity National Information, you can compare the effects of market volatilities on Genpact and Fidelity National 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 Fidelity National. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genpact and Fidelity National.
Diversification Opportunities for Genpact and Fidelity National
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Genpact and Fidelity is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Genpact Limited and Fidelity National Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity National 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 Fidelity National. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity National has no effect on the direction of Genpact i.e., Genpact and Fidelity National go up and down completely randomly.
Pair Corralation between Genpact and Fidelity National
Taking into account the 90-day investment horizon Genpact is expected to generate 2.92 times less return on investment than Fidelity National. But when comparing it to its historical volatility, Genpact Limited is 1.08 times less risky than Fidelity National. It trades about 0.01 of its potential returns per unit of risk. Fidelity National Information is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 6,539 in Fidelity National Information on August 27, 2024 and sell it today you would earn a total of 2,069 from holding Fidelity National Information or generate 31.64% 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. Fidelity National Information
Performance |
| Timeline |
| Genpact Limited |
| Fidelity National |
Genpact and Fidelity National Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Genpact and Fidelity National
The main advantage of trading using opposite Genpact and Fidelity National positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genpact position performs unexpectedly, Fidelity National 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 Fidelity National will offset losses from the drop in Fidelity National's long position.| Genpact vs. Oneconnect Financial Technology | Genpact vs. Global Business Travel | Genpact vs. Alight Inc | Genpact vs. CS Disco LLC |
| Fidelity National vs. Jack Henry Associates | Fidelity National vs. Cognizant Technology Solutions | Fidelity National vs. CDW Corp | Fidelity National vs. Gartner |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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