Correlation Between Genpact and Misumi

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Genpact and Misumi 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 Misumi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Genpact and Misumi Group, you can compare the effects of market volatilities on Genpact and Misumi 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 Misumi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genpact and Misumi.

Diversification Opportunities for Genpact and Misumi

-0.02
  Correlation Coefficient

Good diversification

The 3 months correlation between Genpact and Misumi is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Genpact and Misumi Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Misumi 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 are associated (or correlated) with Misumi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Misumi Group has no effect on the direction of Genpact i.e., Genpact and Misumi go up and down completely randomly.

Pair Corralation between Genpact and Misumi

Taking into account the 90-day investment horizon Genpact is expected to generate 0.52 times more return on investment than Misumi. However, Genpact is 1.94 times less risky than Misumi. It trades about 0.02 of its potential returns per unit of risk. Misumi Group is currently generating about -0.01 per unit of risk. If you would invest  4,041  in Genpact on August 28, 2022 and sell it today you would earn a total of  428.00  from holding Genpact or generate 10.59% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy99.79%
ValuesDaily Returns

Genpact  vs.  Misumi Group

 Performance (%) 
       Timeline  
Genpact 
Genpact Performance
0 of 100
Over the last 90 days Genpact has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, Genpact is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

Genpact Price Channel

Misumi Group 
Misumi Performance
0 of 100
Over the last 90 days Misumi Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong primary indicators, Misumi is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Misumi Price Channel

Genpact and Misumi Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Genpact and Misumi

The main advantage of trading using opposite Genpact and Misumi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genpact position performs unexpectedly, Misumi 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 Misumi will offset losses from the drop in Misumi's long position.
Genpact vs. Gartner
Genpact vs. International Business Machines
Genpact vs. Fidelity National Information
Genpact vs. Cognizant Tech Sol
The idea behind Genpact and Misumi Group 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.
Misumi vs. Stanley Black Decker
Misumi vs. Snap-On
Misumi vs. Toro Company
Misumi vs. Lincoln Elec 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.

Other Complementary Tools

Equity Analysis
Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities
Go
Global Markets Map
Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes
Go
Portfolio Anywhere
Track or share privately all of your investments from the convenience of any device
Go
Portfolio Volatility
Check portfolio volatility and analyze historical return density to properly model market risk
Go
Pair Correlation
Compare performance and examine fundamental relationship between any two equity instruments
Go