Correlation Between Everi Holdings and Genpact
Can any of the company-specific risk be diversified away by investing in both Everi Holdings 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 Everi Holdings and Genpact into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Everi Holdings and Genpact Limited, you can compare the effects of market volatilities on Everi Holdings 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 Everi Holdings with a short position of Genpact. Check out your portfolio center. Please also check ongoing floating volatility patterns of Everi Holdings and Genpact.
Diversification Opportunities for Everi Holdings and Genpact
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Everi and Genpact is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Everi Holdings and Genpact Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genpact Limited and Everi Holdings 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 Everi Holdings 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 Everi Holdings i.e., Everi Holdings and Genpact go up and down completely randomly.
Pair Corralation between Everi Holdings and Genpact
Given the investment horizon of 90 days Everi Holdings is expected to generate 1.99 times more return on investment than Genpact. However, Everi Holdings is 1.99 times more volatile than Genpact Limited. It trades about -0.09 of its potential returns per unit of risk. Genpact Limited is currently generating about -0.3 per unit of risk. If you would invest 934.00 in Everi Holdings on January 20, 2024 and sell it today you would lose (50.00) from holding Everi Holdings or give up 5.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Everi Holdings vs. Genpact Limited
Performance |
| Timeline |
| Everi Holdings |
| Genpact Limited |
Everi Holdings and Genpact Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Everi Holdings and Genpact
The main advantage of trading using opposite Everi Holdings and Genpact positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Everi Holdings 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.| Everi Holdings vs. Accel Entertainment | Everi Holdings vs. Light Wonder | Everi Holdings vs. Inspired Entertainment | Everi Holdings vs. International Game Technology |
| Genpact vs. ASGN Inc | Genpact vs. CACI International | Genpact vs. Perficient | Genpact vs. Science Applications International |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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