Correlation Between Genpact and Alithya
Can any of the company-specific risk be diversified away by investing in both Genpact and Alithya 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 Alithya into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Genpact Limited and Alithya Group, you can compare the effects of market volatilities on Genpact and Alithya 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 Alithya. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genpact and Alithya.
Diversification Opportunities for Genpact and Alithya
Pay attention - limited upside
The 3 months correlation between Genpact and Alithya is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Genpact Limited and Alithya Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alithya Group 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 Alithya. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alithya Group has no effect on the direction of Genpact i.e., Genpact and Alithya go up and down completely randomly.
Pair Corralation between Genpact and Alithya
If you would invest 4,893 in Genpact Limited on December 5, 2024 and sell it today you would earn a total of 380.00 from holding Genpact Limited or generate 7.77% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Genpact Limited vs. Alithya Group
Performance |
Timeline |
Genpact Limited |
Alithya Group |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Genpact and Alithya Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Genpact and Alithya
The main advantage of trading using opposite Genpact and Alithya positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genpact position performs unexpectedly, Alithya 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 Alithya will offset losses from the drop in Alithya's long position.Genpact vs. WNS Holdings | Genpact vs. ASGN Inc | Genpact vs. CACI International | Genpact vs. ExlService Holdings |
Alithya vs. Formula Systems 1985 | Alithya vs. CSP Inc | Alithya vs. Nayax | Alithya vs. Information Services Group |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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