Correlation Between Maximus and Genpact
Can any of the company-specific risk be diversified away by investing in both Maximus and Genpact 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 Maximus and Genpact into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Maximus and Genpact Limited, you can compare the effects of market volatilities on Maximus and Genpact 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 Maximus with a short position of Genpact. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maximus and Genpact.
Diversification Opportunities for Maximus and Genpact
Excellent diversification
The 3 months correlation between Maximus and Genpact is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Maximus and Genpact Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genpact Limited and Maximus 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 Maximus are associated (or correlated) with Genpact. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Genpact Limited has no effect on the direction of Maximus i.e., Maximus and Genpact go up and down completely randomly.
Pair Corralation between Maximus and Genpact
Considering the 90-day investment horizon Maximus is expected to under-perform the Genpact. In addition to that, Maximus is 1.01 times more volatile than Genpact Limited. It trades about -0.31 of its total potential returns per unit of risk. Genpact Limited is currently generating about 0.4 per unit of volatility. If you would invest 3,819 in Genpact Limited on August 30, 2024 and sell it today you would earn a total of 863.00 from holding Genpact Limited or generate 22.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Maximus vs. Genpact Limited
Performance |
| Timeline |
| Maximus |
| Genpact Limited |
Maximus and Genpact Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maximus and Genpact
The main advantage of trading using opposite Maximus and Genpact positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maximus position performs unexpectedly, Genpact 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 Genpact will offset losses from the drop in Genpact's long position.| Maximus vs. Network 1 Technologies | Maximus vs. First Advantage Corp | Maximus vs. BrightView Holdings | Maximus vs. Civeo Corp |
| Genpact vs. WNS Holdings | Genpact vs. ASGN Inc | Genpact vs. CACI International | Genpact vs. ExlService Holdings |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| 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 | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |