Correlation Between Genpact and Nippon Sheet
Can any of the company-specific risk be diversified away by investing in both Genpact and Nippon Sheet 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 Nippon Sheet into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Genpact Limited and Nippon Sheet Glass, you can compare the effects of market volatilities on Genpact and Nippon Sheet 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 Nippon Sheet. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genpact and Nippon Sheet.
Diversification Opportunities for Genpact and Nippon Sheet
-0.96 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Genpact and Nippon is -0.96. Overlapping area represents the amount of risk that can be diversified away by holding Genpact Limited and Nippon Sheet Glass in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nippon Sheet Glass 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 Nippon Sheet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nippon Sheet Glass has no effect on the direction of Genpact i.e., Genpact and Nippon Sheet go up and down completely randomly.
Pair Corralation between Genpact and Nippon Sheet
Taking into account the 90-day investment horizon Genpact Limited is expected to generate 3.67 times more return on investment than Nippon Sheet. However, Genpact is 3.67 times more volatile than Nippon Sheet Glass. It trades about 0.37 of its potential returns per unit of risk. Nippon Sheet Glass is currently generating about -0.22 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 789.00 from holding Genpact Limited or generate 20.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Genpact Limited vs. Nippon Sheet Glass
Performance |
| Timeline |
| Genpact Limited |
| Nippon Sheet Glass |
Genpact and Nippon Sheet Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Genpact and Nippon Sheet
The main advantage of trading using opposite Genpact and Nippon Sheet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genpact position performs unexpectedly, Nippon Sheet 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 Nippon Sheet will offset losses from the drop in Nippon Sheet's long position.| Genpact vs. Oneconnect Financial Technology | Genpact vs. Global Business Travel | Genpact vs. Alight Inc | Genpact vs. CS Disco LLC |
| Nippon Sheet vs. Allison Transmission Holdings | Nippon Sheet vs. Luminar Technologies | Nippon Sheet vs. Lear Corporation | Nippon Sheet vs. BorgWarner |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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