Correlation Between Genpact and TTEC Holdings
Can any of the company-specific risk be diversified away by investing in both Genpact and TTEC 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 TTEC 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 TTEC Holdings, you can compare the effects of market volatilities on Genpact and TTEC 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 TTEC Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genpact and TTEC Holdings.
Diversification Opportunities for Genpact and TTEC Holdings
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Genpact and TTEC is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Genpact Limited and TTEC Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TTEC 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 TTEC Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TTEC Holdings has no effect on the direction of Genpact i.e., Genpact and TTEC Holdings go up and down completely randomly.
Pair Corralation between Genpact and TTEC Holdings
Taking into account the 90-day investment horizon Genpact Limited is expected to generate 0.44 times more return on investment than TTEC Holdings. However, Genpact Limited is 2.29 times less risky than TTEC Holdings. It trades about 0.05 of its potential returns per unit of risk. TTEC Holdings is currently generating about -0.19 per unit of risk. If you would invest 3,182 in Genpact Limited on February 7, 2024 and sell it today you would earn a total of 47.00 from holding Genpact Limited or generate 1.48% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Genpact Limited vs. TTEC Holdings
Performance |
Timeline |
Genpact Limited |
TTEC Holdings |
Genpact and TTEC Holdings Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Genpact and TTEC Holdings
The main advantage of trading using opposite Genpact and TTEC Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genpact position performs unexpectedly, TTEC 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 TTEC Holdings will offset losses from the drop in TTEC Holdings' long position.Genpact vs. ASGN Inc | Genpact vs. FiscalNote Holdings | Genpact vs. International Business Machines | Genpact vs. Aurora Innovation |
TTEC Holdings vs. ASGN Inc | TTEC Holdings vs. FiscalNote Holdings | TTEC Holdings vs. International Business Machines | TTEC Holdings vs. Aurora Innovation |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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