Correlation Between Genpact and ESGL Holdings
Can any of the company-specific risk be diversified away by investing in both Genpact and ESGL Holdings 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 ESGL Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Genpact Limited and ESGL Holdings Limited, you can compare the effects of market volatilities on Genpact and ESGL Holdings 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 ESGL Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genpact and ESGL Holdings.
Diversification Opportunities for Genpact and ESGL Holdings
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Genpact and ESGL is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Genpact Limited and ESGL Holdings Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ESGL Holdings Limited 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 ESGL Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ESGL Holdings Limited has no effect on the direction of Genpact i.e., Genpact and ESGL Holdings go up and down completely randomly.
Pair Corralation between Genpact and ESGL Holdings
Taking into account the 90-day investment horizon Genpact Limited is expected to under-perform the ESGL Holdings. But the stock apears to be less risky and, when comparing its historical volatility, Genpact Limited is 1.87 times less risky than ESGL Holdings. The stock trades about -0.26 of its potential returns per unit of risk. The ESGL Holdings Limited is currently generating about 0.43 of returns per unit of risk over similar time horizon. If you would invest 238.00 in ESGL Holdings Limited on March 26, 2025 and sell it today you would earn a total of 58.00 from holding ESGL Holdings Limited or generate 24.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Genpact Limited vs. ESGL Holdings Limited
Performance |
| Timeline |
| Genpact Limited |
| ESGL Holdings Limited |
Genpact and ESGL Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Genpact and ESGL Holdings
The main advantage of trading using opposite Genpact and ESGL Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genpact position performs unexpectedly, ESGL Holdings 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 ESGL Holdings will offset losses from the drop in ESGL Holdings' long position.| Genpact vs. WNS Holdings | Genpact vs. ASGN Inc | Genpact vs. CACI International | Genpact vs. ExlService Holdings |
| ESGL Holdings vs. FT Vest Equity | ESGL Holdings vs. Zillow Group Class | ESGL Holdings vs. Northern Lights | ESGL Holdings vs. VanEck Vectors Moodys |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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