Correlation Between Genpact and SBC Medical
Can any of the company-specific risk be diversified away by investing in both Genpact and SBC Medical 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 SBC Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Genpact Limited and SBC Medical Group, you can compare the effects of market volatilities on Genpact and SBC Medical 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 SBC Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genpact and SBC Medical.
Diversification Opportunities for Genpact and SBC Medical
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Genpact and SBC is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Genpact Limited and SBC Medical Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SBC Medical Group 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 SBC Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SBC Medical Group has no effect on the direction of Genpact i.e., Genpact and SBC Medical go up and down completely randomly.
Pair Corralation between Genpact and SBC Medical
Taking into account the 90-day investment horizon Genpact Limited is expected to generate 0.23 times more return on investment than SBC Medical. However, Genpact Limited is 4.37 times less risky than SBC Medical. It trades about -0.15 of its potential returns per unit of risk. SBC Medical Group is currently generating about -0.14 per unit of risk. If you would invest 4,501 in Genpact Limited on October 7, 2024 and sell it today you would lose (148.00) from holding Genpact Limited or give up 3.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Genpact Limited vs. SBC Medical Group
Performance |
| Timeline |
| Genpact Limited |
| SBC Medical Group |
Genpact and SBC Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Genpact and SBC Medical
The main advantage of trading using opposite Genpact and SBC Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genpact position performs unexpectedly, SBC Medical 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 SBC Medical will offset losses from the drop in SBC Medical's long position.| Genpact vs. WNS Holdings | Genpact vs. ASGN Inc | Genpact vs. CACI International | Genpact vs. ExlService Holdings |
| SBC Medical vs. Trio Tech International | SBC Medical vs. Sweetgreen | SBC Medical vs. Westrock Coffee | SBC Medical vs. Kura Sushi USA |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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