Correlation Between Genpact and Array Technologies

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

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

Diversification Opportunities for Genpact and Array Technologies

0.01

Correlation Coefficient

Genpact  Array Technologies

Significant diversification

The 3 months correlation between Genpact and Array is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Genpact Limited and Array Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Array Technologies 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 Array Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Array Technologies has no effect on the direction of Genpact i.e., Genpact and Array Technologies go up and down completely randomly.

Pair Corralation between Genpact and Array Technologies

Taking into account the 90-day investment horizon Genpact Limited is expected to under-perform the Array Technologies. But the stock apears to be less risky and, when comparing its historical volatility, Genpact Limited is 2.4 times less risky than Array Technologies. The stock trades about -0.09 of its potential returns per unit of risk. The Array Technologies is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  504.00  in Array Technologies on May 7, 2025 and sell it today you would earn a total of  96.00  from holding Array Technologies or generate 19.05% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Genpact Limited  vs.  Array Technologies

Genpact Limited

Risk-Adjusted Performance

Weakest

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 September 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Array Technologies

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Array Technologies are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Array Technologies showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Genpact and Array Technologies

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

The idea behind Genpact Limited and Array Technologies 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.