Asset Comparison and Correlation

Allowing for 30-days total investment horizon, Procter & Gamble is expected to under-perform the Genpact. But the stock apears to be less risky and, when comparing its historical volatility, Procter & Gamble is 1.01 times less risky than Genpact. The stock trades about -0.32 of its potential returns per unit of risk. The Genpact Ltd. is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest 1,661 in Genpact Ltd. on April 26, 2012 and sell it today you would lose (36.00) from holding Genpact Ltd. or give up 2.17% of portfolio value over 30 days.