Correlation Between Atos Origin and Genpact

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

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

Diversification Opportunities for Atos Origin and Genpact

-0.56

Correlation Coefficient

Atos Origin  Genpact

Excellent diversification

The 3 months correlation between Atos and Genpact is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Atos Origin SA and Genpact Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genpact Limited and Atos Origin 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 Atos Origin SA 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 Atos Origin i.e., Atos Origin and Genpact go up and down completely randomly.

Pair Corralation between Atos Origin and Genpact

Assuming the 90 days horizon Atos Origin SA is expected to under-perform the Genpact. In addition to that, Atos Origin is 6.5 times more volatile than Genpact Limited. It trades about -0.29 of its total potential returns per unit of risk. Genpact Limited is currently generating about 0.16 per unit of volatility. If you would invest  4,291  in Genpact Limited on December 27, 2024 and sell it today you would earn a total of  784.00  from holding Genpact Limited or generate 18.27% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.36%
Values	Daily Returns

Atos Origin SA  vs.  Genpact Limited

Atos Origin SA

Risk-Adjusted Performance

Very Weak

Over the last 90 days Atos Origin SA has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Genpact Limited

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Genpact Limited are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain technical and fundamental indicators, Genpact reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Atos Origin and Genpact

The main advantage of trading using opposite Atos Origin and Genpact positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atos Origin 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 Atos Origin SA 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.

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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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.