Correlation Between Genpact and VCI Global
Can any of the company-specific risk be diversified away by investing in both Genpact and VCI 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 VCI 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 VCI Global Limited, you can compare the effects of market volatilities on Genpact and VCI 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 VCI Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genpact and VCI Global.
Diversification Opportunities for Genpact and VCI Global
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Genpact and VCI is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Genpact Limited and VCI Global Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VCI Global Limited 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 VCI Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VCI Global Limited has no effect on the direction of Genpact i.e., Genpact and VCI Global go up and down completely randomly.
Pair Corralation between Genpact and VCI Global
Taking into account the 90-day investment horizon Genpact is expected to generate 2.35 times less return on investment than VCI Global. But when comparing it to its historical volatility, Genpact Limited is 12.59 times less risky than VCI Global. It trades about 0.4 of its potential returns per unit of risk. VCI Global Limited is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 461.00 in VCI Global Limited on August 30, 2024 and sell it today you would lose (51.00) from holding VCI Global Limited or give up 11.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Genpact Limited vs. VCI Global Limited
Performance |
| Timeline |
| Genpact Limited |
| VCI Global Limited |
Genpact and VCI Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Genpact and VCI Global
The main advantage of trading using opposite Genpact and VCI Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genpact position performs unexpectedly, VCI 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 VCI Global will offset losses from the drop in VCI Global's long position.| Genpact vs. WNS Holdings | Genpact vs. ASGN Inc | Genpact vs. CACI International | Genpact vs. ExlService Holdings |
| VCI Global vs. CRA International | VCI Global vs. ICF International | VCI Global vs. Forrester Research | VCI Global vs. Huron Consulting Group |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Stocks Directory Find actively traded stocks across global markets | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| 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 |