Correlation Analysis Between International Business and Genpact

Analyzing existing cross correlation between International Business Machines and Genpact Limited. You can compare the effects of market volatilities on International Business 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 International Business with a short position of Genpact. See also your portfolio center. Please also check ongoing floating volatility patterns of International Business and Genpact.
Horizon     30 Days    Login   to change
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Comparative Performance

International Business  
66

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in International Business Machines are ranked lower than 6 (%) of all global equities and portfolios over the last 30 days. Even with considerably steady technical indicators, International Business is not utilizing all of its potentials. The ongoing stock price chaos, may contribute to medium term losses for the stakeholders.
Genpact Limited  
1616

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Genpact Limited are ranked lower than 16 (%) of all global equities and portfolios over the last 30 days. In spite of rather weak fundamental drivers, Genpact exhibited solid returns over the last few months and may actually be approaching a breakup point.

International Business and Genpact Volatility Contrast

 Predicted Return Density 
    
  Returns 

International Business Machine  vs.  Genpact Limited

 Performance (%) 
    
  Timeline 

Pair Volatility

Considering 30-days investment horizon, International Business is expected to generate 2.63 times less return on investment than Genpact. But when comparing it to its historical volatility, International Business Machines is 1.05 times less risky than Genpact. It trades about 0.1 of its potential returns per unit of risk. Genpact Limited is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest  3,881  in Genpact Limited on December 28, 2019 and sell it today you would earn a total of  550.00  from holding Genpact Limited or generate 14.17% return on investment over 30 days.

Pair Corralation between International Business and Genpact

0.51
Time Period3 Months [change]
DirectionPositive 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for International Business and Genpact

International Business Machine diversification synergy

Very weak diversification

Overlapping area represents the amount of risk that can be diversified away by holding International Business Machine and Genpact Limited in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Genpact Limited and International Business 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 International Business Machines 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 International Business i.e. International Business and Genpact go up and down completely randomly.
See also your portfolio center. Please also try Transaction History module to view history of all your transactions and understand their impact on performance.