Correlation Between Data Storage and Genpact

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Data Storage 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 Data Storage and Genpact into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Data Storage Corp and Genpact Limited, you can compare the effects of market volatilities on Data Storage 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 Data Storage with a short position of Genpact. Check out your portfolio center. Please also check ongoing floating volatility patterns of Data Storage and Genpact.

Diversification Opportunities for Data Storage and Genpact

  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Data and Genpact is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Data Storage Corp and Genpact Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genpact Limited and Data Storage 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 Data Storage Corp 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 Data Storage i.e., Data Storage and Genpact go up and down completely randomly.

Pair Corralation between Data Storage and Genpact

Given the investment horizon of 90 days Data Storage Corp is expected to generate 5.95 times more return on investment than Genpact. However, Data Storage is 5.95 times more volatile than Genpact Limited. It trades about -0.01 of its potential returns per unit of risk. Genpact Limited is currently generating about -0.29 per unit of risk. If you would invest  580.00  in Data Storage Corp on January 17, 2024 and sell it today you would lose (44.00) from holding Data Storage Corp or give up 7.59% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
ValuesDaily Returns

Data Storage Corp  vs.  Genpact Limited

Data Storage Corp 

Risk-Adjusted Performance

13 of 100

Compared to the overall equity markets, risk-adjusted returns on investments in Data Storage Corp are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Data Storage unveiled solid returns over the last few months and may actually be approaching a breakup point.
Genpact Limited 

Risk-Adjusted Performance

0 of 100

Very Weak
Over the last 90 days Genpact Limited has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's technical and fundamental indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Data Storage and Genpact Volatility Contrast

   Predicted Return Density   

Pair Trading with Data Storage and Genpact

The main advantage of trading using opposite Data Storage and Genpact positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Data Storage 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.
The idea behind Data Storage Corp and Genpact Limited pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Global Correlations module to find global opportunities by holding instruments from different markets.

Other Complementary Tools

Instant Ratings
Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance
ETF Categories
List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments
Idea Optimizer
Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio
Portfolio Dashboard
Portfolio dashboard that provides centralized access to all your investments
Funds Screener
Find actively-traded funds from around the world traded on over 30 global exchanges
Sync Your Broker
Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors.
Piotroski F Score
Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals
Portfolio Comparator
Compare the composition, asset allocations and performance of any two portfolios in your account