Correlation Between Genpact and Gartner
Can any of the company-specific risk be diversified away by investing in both Genpact and Gartner 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 Gartner into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Genpact Limited and Gartner, you can compare the effects of market volatilities on Genpact and Gartner 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 Gartner. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genpact and Gartner.
Diversification Opportunities for Genpact and Gartner
Very weak diversification
The 3 months correlation between Genpact and Gartner is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Genpact Limited and Gartner in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gartner 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 Gartner. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gartner has no effect on the direction of Genpact i.e., Genpact and Gartner go up and down completely randomly.
Pair Corralation between Genpact and Gartner
Taking into account the 90-day investment horizon Genpact is expected to generate 3.72 times less return on investment than Gartner. In addition to that, Genpact is 1.09 times more volatile than Gartner. It trades about 0.01 of its total potential returns per unit of risk. Gartner is currently generating about 0.06 per unit of volatility. If you would invest 35,046 in Gartner on August 24, 2024 and sell it today you would earn a total of 16,878 from holding Gartner or generate 48.16% 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. Gartner
Performance |
| Timeline |
| Genpact Limited |
| Gartner |
Genpact and Gartner Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Genpact and Gartner
The main advantage of trading using opposite Genpact and Gartner positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genpact position performs unexpectedly, Gartner 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 Gartner will offset losses from the drop in Gartner's long position.| Genpact vs. Fidelity National Information | Genpact vs. International Business Machines | Genpact vs. Kyndryl Holdings | Genpact vs. DXC Technology Co |
| Gartner vs. Concentrix | Gartner vs. Accenture plc | Gartner vs. International Business Machines | Gartner vs. Cognizant Technology Solutions |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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