Correlation Between Genpact and TOMI Environmental
Can any of the company-specific risk be diversified away by investing in both Genpact and TOMI Environmental 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 TOMI Environmental into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Genpact Limited and TOMI Environmental Solutions, you can compare the effects of market volatilities on Genpact and TOMI Environmental 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 TOMI Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genpact and TOMI Environmental.
Diversification Opportunities for Genpact and TOMI Environmental
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Genpact and TOMI is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Genpact Limited and TOMI Environmental Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TOMI Environmental 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 TOMI Environmental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TOMI Environmental has no effect on the direction of Genpact i.e., Genpact and TOMI Environmental go up and down completely randomly.
Pair Corralation between Genpact and TOMI Environmental
Taking into account the 90-day investment horizon Genpact is expected to generate 4.28 times less return on investment than TOMI Environmental. But when comparing it to its historical volatility, Genpact Limited is 3.16 times less risky than TOMI Environmental. It trades about 0.03 of its potential returns per unit of risk. TOMI Environmental Solutions is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 69.00 in TOMI Environmental Solutions on November 19, 2024 and sell it today you would earn a total of 28.00 from holding TOMI Environmental Solutions or generate 40.58% 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. TOMI Environmental Solutions
Performance |
| Timeline |
| Genpact Limited |
| TOMI Environmental |
Genpact and TOMI Environmental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Genpact and TOMI Environmental
The main advantage of trading using opposite Genpact and TOMI Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genpact position performs unexpectedly, TOMI Environmental 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 TOMI Environmental will offset losses from the drop in TOMI Environmental's long position.| Genpact vs. WNS Holdings | Genpact vs. ASGN Inc | Genpact vs. CACI International | Genpact vs. ExlService Holdings |
| TOMI Environmental vs. Decision Diagnostics | TOMI Environmental vs. Kronos Advanced Technologies | TOMI Environmental vs. GeoVax Labs | TOMI Environmental vs. Creative Realities |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |