Correlation Between CleanCore Solutions and Genpact

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

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

Diversification Opportunities for CleanCore Solutions and Genpact

-0.74

Correlation Coefficient

CleanCore Solutions  Genpact

Pay attention - limited upside

The 3 months correlation between CleanCore and Genpact is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding CleanCore Solutions and Genpact Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genpact Limited and CleanCore Solutions 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 CleanCore Solutions are associated (or correlated) with Genpact. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Genpact Limited has no effect on the direction of CleanCore Solutions i.e., CleanCore Solutions and Genpact go up and down completely randomly.

Pair Corralation between CleanCore Solutions and Genpact

Given the investment horizon of 90 days CleanCore Solutions is expected to generate 2.25 times more return on investment than Genpact. However, CleanCore Solutions is 2.25 times more volatile than Genpact Limited. It trades about 0.16 of its potential returns per unit of risk. Genpact Limited is currently generating about -0.1 per unit of risk. If you would invest  113.00  in CleanCore Solutions on February 28, 2025 and sell it today you would earn a total of  68.00  from holding CleanCore Solutions or generate 60.18% return on investment over 90 days.

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

CleanCore Solutions  vs.  Genpact Limited

CleanCore Solutions

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in CleanCore Solutions are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of rather unfluctuating basic indicators, CleanCore Solutions exhibited solid returns over the last few months and may actually be approaching a breakup point.

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 uncertain performance in the last few months, the Stock's technical and fundamental indicators remain nearly stable which may send shares a bit higher in June 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with CleanCore Solutions and Genpact

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

The idea behind CleanCore Solutions and Genpact Limited 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.

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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.