Correlation Between Genpact and LanzaTech Global
Can any of the company-specific risk be diversified away by investing in both Genpact and LanzaTech Global 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 LanzaTech Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Genpact Limited and LanzaTech Global, you can compare the effects of market volatilities on Genpact and LanzaTech Global 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 LanzaTech Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genpact and LanzaTech Global.
Diversification Opportunities for Genpact and LanzaTech Global
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Genpact and LanzaTech is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Genpact Limited and LanzaTech Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LanzaTech Global 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 LanzaTech Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LanzaTech Global has no effect on the direction of Genpact i.e., Genpact and LanzaTech Global go up and down completely randomly.
Pair Corralation between Genpact and LanzaTech Global
Taking into account the 90-day investment horizon Genpact Limited is expected to generate 0.25 times more return on investment than LanzaTech Global. However, Genpact Limited is 4.0 times less risky than LanzaTech Global. It trades about 0.21 of its potential returns per unit of risk. LanzaTech Global is currently generating about -0.15 per unit of risk. If you would invest 3,921 in Genpact Limited on August 31, 2024 and sell it today you would earn a total of 728.00 from holding Genpact Limited or generate 18.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 81.82% |
| Values | Daily Returns |
Genpact Limited vs. LanzaTech Global
Performance |
| Timeline |
| Genpact Limited |
| LanzaTech Global |
Genpact and LanzaTech Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Genpact and LanzaTech Global
The main advantage of trading using opposite Genpact and LanzaTech Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genpact position performs unexpectedly, LanzaTech Global 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 LanzaTech Global will offset losses from the drop in LanzaTech Global's long position.| Genpact vs. WNS Holdings | Genpact vs. ASGN Inc | Genpact vs. CACI International | Genpact vs. ExlService Holdings |
| LanzaTech Global vs. Flexible Solutions International | LanzaTech Global vs. Summit Materials | LanzaTech Global vs. Asure Software | LanzaTech Global vs. Griffon |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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