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Are CoreLogic investors shifting to Genpact?

July 23, 2020  By
It looks like Genpact will be up for a correction way faster as its share price whent up 1.53% today to CoreLogic's 0.6328%. While some baby boomers are getting worried about technology space, we are going to break down both, CoreLogic and Genpact as potential short-term investments. We are going to inspect some of the competitive aspects of both CoreLogic and Genpact.
Published over a year ago
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Reviewed by Ellen Johnson

By analyzing existing essential indicators between CoreLogic and Genpact, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in Genpact with a short position in CoreLogic. Check out our pair correlation module for more information.

Let's begin by analyzing the assets. The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. CoreLogic has an asset utilization ratio of 48.72 percent. This suggests that the company is making $0.49 for each dollar of assets. An increasing asset utilization means that CoreLogic is more efficient with each dollar of assets it utilizes for everyday operations.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two entities, such as CoreLogic or Analog is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.

How important is CoreLogic's Liquidity

CoreLogic financial leverage refers to using borrowed capital as a funding source to finance CoreLogic ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. CoreLogic financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to CoreLogic's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of CoreLogic's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between CoreLogic's total debt and its cash.

Correlation Between CoreLogic and Analog Devices

In general, Delisted Stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding CoreLogic together with similar or unrelated positions with a negative correlation. For example, you can also add Analog Devices to your portfolio. If Analog Devices is not perfectly correlated to CoreLogic it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When CoreLogic, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down.
Are you currently holding both CoreLogic and Analog Devices in your portfolio? Please note if you are using this as a pair-trade strategy between CoreLogic and Analog Devices, watch out for correlation discrepancy over time. Relying on the historical price correlations and assuming that it will not change may lead to short-term losses. Please check pair correlation details between CLGX and ADI for more information.

What is driving CoreLogic Investor Appetite?

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.

Revenue Breakdown

Let me now analyze CoreLogic revenue. Based on the latest financial disclosure , CoreLogic reported 1.79 B of revenue. This is 56.08% lower than that of the Technology sector and 78.93% lower than that of Information Technology Services industry. The revenue for all United States stocks is 81.03% higher than that of CoreLogic. As for Genpact we see revenue of 3.63 B, which is 57.27% lower than that of the Information Technology Services
CoreLogic1.79 Billion
Sector4.08 Billion
Genpact3.63 Billion
1.8 B
CoreLogic
4.1 B
Sector
3.6 B
Genpact

Momentum Analysis of CoreLogic suggests possible reversal in August

The downside variance is down to 5.82 as of today. As of the 23rd of July, CoreLogic shows the downside deviation of 2.41, risk adjusted performance of 0.4237, and mean deviation of 2.24. CoreLogic technical analysis gives you the methodology to make use of historical prices and volume patterns to determine a pattern that approximates the direction of the firm's future prices. Put another way, you can use this information to find out if the firm will indeed mirror its model of historical prices and volume momentum, or the prices will eventually revert. We were able to break down and interpolate nineteen technical drivers for CoreLogic, which can be compared to its rivals. Please confirm CoreLogic standard deviation, maximum drawdown, as well as the relationship between the Maximum Drawdown and expected short fall to decide if CoreLogic is priced correctly, providing market reflects its regular price of 68.38 per share. Given that CoreLogic has jensen alpha of 0.9368, we suggest you to validate CoreLogic's prevailing market performance to make sure the company can sustain itself at a future point.

Our Conclusion on CoreLogic

While many other companies under the information technology services industry are still a bit expensive, CoreLogic may offer a potential longer-term growth to investors. To conclude, as of the 23rd of July 2020, our analysis shows that CoreLogic slowly supersedes the market. The company is fairly valued and projects below average chance of distress for the next 2 years. Our present 30 days recommendation on the company is Strong Buy.

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Editorial Staff

Vlad Skutelnik is a Macroaxis Contributor. Vlad covers stocks, funds, cryptocurrencies, and ETFs that are traded in North America, focusing primarily on fundamentals, valuation and market volatility. He has many years of experience in fintech, predictive investment analytics, and risk management. View Profile
This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of CoreLogic. Please refer to our Terms of Use for any information regarding our disclosure principles.

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