Correlation Between Genpact and ExlService Holdings
Can any of the company-specific risk be diversified away by investing in both Genpact and ExlService 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 ExlService 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 ExlService Holdings, you can compare the effects of market volatilities on Genpact and ExlService 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 ExlService Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genpact and ExlService Holdings.
Diversification Opportunities for Genpact and ExlService Holdings
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Genpact and ExlService is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Genpact Limited and ExlService Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ExlService Holdings 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 ExlService Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ExlService Holdings has no effect on the direction of Genpact i.e., Genpact and ExlService Holdings go up and down completely randomly.
Pair Corralation between Genpact and ExlService Holdings
Taking into account the 90-day investment horizon Genpact Limited is expected to under-perform the ExlService Holdings. In addition to that, Genpact is 1.11 times more volatile than ExlService Holdings. It trades about -0.09 of its total potential returns per unit of risk. ExlService Holdings is currently generating about -0.01 per unit of volatility. If you would invest 4,648 in ExlService Holdings on March 23, 2025 and sell it today you would lose (127.00) from holding ExlService Holdings or give up 2.73% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Genpact Limited vs. ExlService Holdings
Performance |
| Timeline |
| Genpact Limited |
| ExlService Holdings |
Genpact and ExlService Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Genpact and ExlService Holdings
The main advantage of trading using opposite Genpact and ExlService Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genpact position performs unexpectedly, ExlService 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 ExlService Holdings will offset losses from the drop in ExlService Holdings' long position.| Genpact vs. WNS Holdings | Genpact vs. ASGN Inc | Genpact vs. CACI International | Genpact vs. ExlService Holdings |
| ExlService Holdings vs. Genpact Limited | ExlService Holdings vs. ASGN Inc | ExlService Holdings vs. TTEC Holdings | ExlService Holdings vs. WNS Holdings |
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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |