Correlation Between Genpact and CSG Systems
Can any of the company-specific risk be diversified away by investing in both Genpact and CSG Systems 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 CSG Systems into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Genpact Limited and CSG Systems International, you can compare the effects of market volatilities on Genpact and CSG Systems 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 CSG Systems. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genpact and CSG Systems.
Diversification Opportunities for Genpact and CSG Systems
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Genpact and CSG is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Genpact Limited and CSG Systems International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CSG Systems International 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 CSG Systems. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CSG Systems International has no effect on the direction of Genpact i.e., Genpact and CSG Systems go up and down completely randomly.
Pair Corralation between Genpact and CSG Systems
Taking into account the 90-day investment horizon Genpact Limited is expected to under-perform the CSG Systems. In addition to that, Genpact is 1.47 times more volatile than CSG Systems International. It trades about -0.05 of its total potential returns per unit of risk. CSG Systems International is currently generating about 0.04 per unit of volatility. If you would invest 5,983 in CSG Systems International on April 30, 2025 and sell it today you would earn a total of 200.00 from holding CSG Systems International or generate 3.34% 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. CSG Systems International
Performance |
Timeline |
Genpact Limited |
CSG Systems International |
Genpact and CSG Systems Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Genpact and CSG Systems
The main advantage of trading using opposite Genpact and CSG Systems positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genpact position performs unexpectedly, CSG Systems 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 CSG Systems will offset losses from the drop in CSG Systems' long position.The idea behind Genpact Limited and CSG Systems International 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.CSG Systems vs. Evertec | CSG Systems vs. Consensus Cloud Solutions | CSG Systems vs. Global Blue Group | CSG Systems vs. ExlService Holdings |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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