Correlation Between Genpact and Oneconnect Financial
Can any of the company-specific risk be diversified away by investing in both Genpact and Oneconnect Financial 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 Oneconnect Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Genpact Limited and Oneconnect Financial Technology, you can compare the effects of market volatilities on Genpact and Oneconnect Financial 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 Oneconnect Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genpact and Oneconnect Financial.
Diversification Opportunities for Genpact and Oneconnect Financial
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Genpact and Oneconnect is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Genpact Limited and Oneconnect Financial Technolog in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oneconnect Financial 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 Oneconnect Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oneconnect Financial has no effect on the direction of Genpact i.e., Genpact and Oneconnect Financial go up and down completely randomly.
Pair Corralation between Genpact and Oneconnect Financial
Taking into account the 90-day investment horizon Genpact Limited is expected to generate 0.44 times more return on investment than Oneconnect Financial. However, Genpact Limited is 2.25 times less risky than Oneconnect Financial. It trades about 0.36 of its potential returns per unit of risk. Oneconnect Financial Technology is currently generating about -0.03 per unit of risk. If you would invest 3,834 in Genpact Limited on August 26, 2024 and sell it today you would earn a total of 785.00 from holding Genpact Limited or generate 20.47% 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. Oneconnect Financial Technolog
Performance |
| Timeline |
| Genpact Limited |
| Oneconnect Financial |
Genpact and Oneconnect Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Genpact and Oneconnect Financial
The main advantage of trading using opposite Genpact and Oneconnect Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genpact position performs unexpectedly, Oneconnect Financial 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 Oneconnect Financial will offset losses from the drop in Oneconnect Financial's long position.| Genpact vs. Oneconnect Financial Technology | Genpact vs. Global Business Travel | Genpact vs. Alight Inc | Genpact vs. CS Disco LLC |
| Oneconnect Financial vs. OLB Group | Oneconnect Financial vs. Friendable | Oneconnect Financial vs. KwikClick |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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