Correlation Between Genpact and Planet Image
Can any of the company-specific risk be diversified away by investing in both Genpact and Planet Image 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 Planet Image into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Genpact Limited and Planet Image International, you can compare the effects of market volatilities on Genpact and Planet Image 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 Planet Image. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genpact and Planet Image.
Diversification Opportunities for Genpact and Planet Image
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Genpact and Planet is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Genpact Limited and Planet Image International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Planet Image Interna 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 Planet Image. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Planet Image Interna has no effect on the direction of Genpact i.e., Genpact and Planet Image go up and down completely randomly.
Pair Corralation between Genpact and Planet Image
Taking into account the 90-day investment horizon Genpact is expected to generate 21.88 times less return on investment than Planet Image. But when comparing it to its historical volatility, Genpact Limited is 6.1 times less risky than Planet Image. It trades about 0.01 of its potential returns per unit of risk. Planet Image International is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 279.00 in Planet Image International on November 2, 2024 and sell it today you would earn a total of 46.00 from holding Planet Image International or generate 16.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 51.82% |
| Values | Daily Returns |
Genpact Limited vs. Planet Image International
Performance |
| Timeline |
| Genpact Limited |
| Planet Image Interna |
Genpact and Planet Image Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Genpact and Planet Image
The main advantage of trading using opposite Genpact and Planet Image positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genpact position performs unexpectedly, Planet Image 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 Planet Image will offset losses from the drop in Planet Image's long position.| Genpact vs. WNS Holdings | Genpact vs. ASGN Inc | Genpact vs. CACI International | Genpact vs. ExlService Holdings |
| Planet Image vs. Pinterest | Planet Image vs. KVH Industries | Planet Image vs. Modine Manufacturing | Planet Image vs. Clear Channel Outdoor |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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