Correlation Between Stamps and Genpact
Can any of the company-specific risk be diversified away by investing in both Stamps 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 Stamps and Genpact into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stamps Inc and Genpact Limited, you can compare the effects of market volatilities on Stamps 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 Stamps with a short position of Genpact. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stamps and Genpact.
Diversification Opportunities for Stamps and Genpact
Pay attention - limited upside
The 3 months correlation between Stamps and Genpact is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Stamps Inc and Genpact Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genpact Limited and Stamps 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 Stamps Inc 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 Stamps i.e., Stamps and Genpact go up and down completely randomly.
Pair Corralation between Stamps and Genpact
If you would invest (100.00) in Stamps Inc on January 25, 2024 and sell it today you would earn a total of 100.00 from holding Stamps Inc 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 |
Stamps Inc vs. Genpact Limited
Performance |
| Timeline |
| Stamps Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Genpact Limited |
Stamps and Genpact Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stamps and Genpact
The main advantage of trading using opposite Stamps and Genpact positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stamps 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.| Stamps vs. Grocery Outlet Holding | Stamps vs. Transphorm Technology | Stamps vs. Asbury Automotive Group | Stamps vs. CDW Corp |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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