Correlation Between Genpact and TransUnion

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

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

Diversification Opportunities for Genpact and TransUnion

-0.01

Correlation Coefficient

Genpact  TransUnion

Good diversification

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

Pair Corralation between Genpact and TransUnion

Taking into account the 90-day investment horizon Genpact Limited is expected to under-perform the TransUnion. In addition to that, Genpact is 1.13 times more volatile than TransUnion. It trades about -0.06 of its total potential returns per unit of risk. TransUnion is currently generating about 0.1 per unit of volatility. If you would invest  8,449  in TransUnion on May 3, 2025 and sell it today you would earn a total of  1,070  from holding TransUnion or generate 12.66% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.39%
Values	Daily Returns

Genpact Limited  vs.  TransUnion

Genpact Limited

Risk-Adjusted Performance

Very Weak

Over the last 90 days Genpact Limited has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest unfluctuating performance, the Stock's technical and fundamental indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

TransUnion

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in TransUnion are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unfluctuating basic indicators, TransUnion unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Genpact and TransUnion

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

The idea behind Genpact Limited and TransUnion 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.