Correlation Between Genpact and IGATE Corp
Can any of the company-specific risk be diversified away by investing in both Genpact and IGATE Corp 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 IGATE Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Genpact Limited and IGATE Corp, you can compare the effects of market volatilities on Genpact and IGATE Corp 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 IGATE Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genpact and IGATE Corp.
Diversification Opportunities for Genpact and IGATE Corp
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Genpact and IGATE is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Genpact Limited and IGATE Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IGATE Corp 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 IGATE Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IGATE Corp has no effect on the direction of Genpact i.e., Genpact and IGATE Corp go up and down completely randomly.
Pair Corralation between Genpact and IGATE Corp
If you would invest (100.00) in IGATE Corp on January 24, 2024 and sell it today you would earn a total of 100.00 from holding IGATE Corp or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Genpact Limited vs. IGATE Corp
Performance |
| Timeline |
| Genpact Limited |
| IGATE Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Genpact and IGATE Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Genpact and IGATE Corp
The main advantage of trading using opposite Genpact and IGATE Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genpact position performs unexpectedly, IGATE Corp 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 IGATE Corp will offset losses from the drop in IGATE Corp's long position.The idea behind Genpact Limited and IGATE Corp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| IGATE Corp vs. Ecolab Inc | IGATE Corp vs. Gulf Resources | IGATE Corp vs. Black Hills | IGATE Corp vs. Comstock Holding Companies |
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 Stocks Directory module to find actively traded stocks across global markets.
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