Correlation Between Genpact and Taskus

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

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

Diversification Opportunities for Genpact and Taskus

-0.04

Correlation Coefficient

Genpact  Taskus

Good diversification

The 3 months correlation between Genpact and Taskus is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Genpact Limited and Taskus Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Taskus Inc 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 Taskus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Taskus Inc has no effect on the direction of Genpact i.e., Genpact and Taskus go up and down completely randomly.

Pair Corralation between Genpact and Taskus

Taking into account the 90-day investment horizon Genpact is expected to generate 1.36 times less return on investment than Taskus. But when comparing it to its historical volatility, Genpact Limited is 1.96 times less risky than Taskus. It trades about 0.06 of its potential returns per unit of risk. Taskus Inc is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  912.00  in Taskus Inc on January 21, 2025 and sell it today you would earn a total of  368.00  from holding Taskus Inc or generate 40.35% return on investment over 90 days.

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

Genpact Limited  vs.  Taskus Inc

Genpact Limited

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Genpact Limited are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable technical and fundamental indicators, Genpact is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

Taskus Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Taskus Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Stock's basic indicators remain quite persistent which may send shares a bit higher in May 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pair Trading with Genpact and Taskus

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

The idea behind Genpact Limited and Taskus Inc 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 Commodity Directory module to find actively traded commodities issued by global exchanges.