Correlation Between Insignia Systems and Genpact
Can any of the company-specific risk be diversified away by investing in both Insignia Systems 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 Insignia Systems and Genpact into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Insignia Systems and Genpact Limited, you can compare the effects of market volatilities on Insignia Systems 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 Insignia Systems with a short position of Genpact. Check out your portfolio center. Please also check ongoing floating volatility patterns of Insignia Systems and Genpact.
Diversification Opportunities for Insignia Systems and Genpact
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Insignia and Genpact is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Insignia Systems and Genpact Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genpact Limited and Insignia Systems 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 Insignia Systems 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 Insignia Systems i.e., Insignia Systems and Genpact go up and down completely randomly.
Pair Corralation between Insignia Systems and Genpact
If you would invest 535.00 in Insignia Systems on January 19, 2024 and sell it today you would earn a total of 0.00 from holding Insignia Systems or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 2.38% |
| Values | Daily Returns |
Insignia Systems vs. Genpact Limited
Performance |
| Timeline |
| Insignia Systems |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Genpact Limited |
Insignia Systems and Genpact Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Insignia Systems and Genpact
The main advantage of trading using opposite Insignia Systems and Genpact positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Insignia Systems 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.| Insignia Systems vs. Steel Connect | Insignia Systems vs. Baosheng Media Group | Insignia Systems vs. Impact Fusion International | Insignia Systems vs. Clubhouse Media Group |
| Genpact vs. International Business Machines | Genpact vs. Aurora Innovation | Genpact vs. ARB IOT Group | Genpact vs. 9F Inc |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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