Correlation Between Genpact and FiscalNote Holdings
Can any of the company-specific risk be diversified away by investing in both Genpact and FiscalNote Holdings 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 Genpact and FiscalNote Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Genpact Limited and FiscalNote Holdings, you can compare the effects of market volatilities on Genpact and FiscalNote Holdings 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 Genpact with a short position of FiscalNote Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genpact and FiscalNote Holdings.
Diversification Opportunities for Genpact and FiscalNote Holdings
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Genpact and FiscalNote is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Genpact Limited and FiscalNote Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FiscalNote Holdings and Genpact 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 Genpact Limited are associated (or correlated) with FiscalNote Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FiscalNote Holdings has no effect on the direction of Genpact i.e., Genpact and FiscalNote Holdings go up and down completely randomly.
Pair Corralation between Genpact and FiscalNote Holdings
Taking into account the 90-day investment horizon Genpact Limited is expected to generate 0.34 times more return on investment than FiscalNote Holdings. However, Genpact Limited is 2.95 times less risky than FiscalNote Holdings. It trades about 0.15 of its potential returns per unit of risk. FiscalNote Holdings is currently generating about -0.12 per unit of risk. If you would invest 3,837 in Genpact Limited on September 12, 2024 and sell it today you would earn a total of 636.00 from holding Genpact Limited or generate 16.58% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Genpact Limited vs. FiscalNote Holdings
Performance |
Timeline |
Genpact Limited |
FiscalNote Holdings |
Genpact and FiscalNote Holdings Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Genpact and FiscalNote Holdings
The main advantage of trading using opposite Genpact and FiscalNote Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genpact position performs unexpectedly, FiscalNote Holdings 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 FiscalNote Holdings will offset losses from the drop in FiscalNote Holdings' long position.Genpact vs. WNS Holdings | Genpact vs. ASGN Inc | Genpact vs. CACI International | Genpact vs. ExlService Holdings |
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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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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