Correlation Between Genpact and Quintiles Transnational

Can any of the company-specific risk be diversified away by investing in both Genpact and Quintiles Transnational 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 Quintiles Transnational into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Genpact Limited and Quintiles Transnational, you can compare the effects of market volatilities on Genpact and Quintiles Transnational 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 Quintiles Transnational. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genpact and Quintiles Transnational.

Diversification Opportunities for Genpact and Quintiles Transnational

0.0

Correlation Coefficient

Genpact  Quintiles Transnational

Pay attention - limited upside

The 3 months correlation between Genpact and Quintiles is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Genpact Limited and Quintiles Transnational in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Quintiles Transnational 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 Quintiles Transnational. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Quintiles Transnational has no effect on the direction of Genpact i.e., Genpact and Quintiles Transnational go up and down completely randomly.

Pair Corralation between Genpact and Quintiles Transnational

If you would invest (100.00) in Quintiles Transnational on January 31, 2024 and sell it today you would earn a total of  100.00  from holding Quintiles Transnational 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

Genpact Limited  vs.  Quintiles Transnational

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 unfluctuating performance in the last few months, the Stock's technical and fundamental indicators remain nearly stable which may send shares a bit higher in May 2024. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Quintiles Transnational

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Quintiles Transnational has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Quintiles Transnational is not utilizing all of its potentials. The recent stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Genpact and Quintiles Transnational

The main advantage of trading using opposite Genpact and Quintiles Transnational positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genpact position performs unexpectedly, Quintiles Transnational 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 Quintiles Transnational will offset losses from the drop in Quintiles Transnational's long position.

The idea behind Genpact Limited and Quintiles Transnational 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.

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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.