Correlation Between Genpact and Web Global
Can any of the company-specific risk be diversified away by investing in both Genpact and Web 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 Web 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 Web Global Holdings, you can compare the effects of market volatilities on Genpact and Web 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 Web Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genpact and Web Global.
Diversification Opportunities for Genpact and Web Global
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Genpact and Web is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Genpact Limited and Web Global Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Web Global Holdings 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 Web Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Web Global Holdings has no effect on the direction of Genpact i.e., Genpact and Web Global go up and down completely randomly.
Pair Corralation between Genpact and Web Global
If you would invest 3,339 in Genpact Limited on August 26, 2024 and sell it today you would earn a total of 1,280 from holding Genpact Limited or generate 38.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 0.4% |
| Values | Daily Returns |
Genpact Limited vs. Web Global Holdings
Performance |
| Timeline |
| Genpact Limited |
| Web Global Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Genpact and Web Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Genpact and Web Global
The main advantage of trading using opposite Genpact and Web Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genpact position performs unexpectedly, Web 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 Web Global will offset losses from the drop in Web Global's long position.| Genpact vs. Oneconnect Financial Technology | Genpact vs. Global Business Travel | Genpact vs. Alight Inc | Genpact vs. CS Disco LLC |
| Web Global vs. Universal Media Group | Web Global vs. Hall of Fame | Web Global vs. SNM Gobal Holdings | Web Global vs. Movie Studio |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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