Correlation Between Infosys and N B
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By analyzing existing cross correlation between Infosys Limited and N B I, you can compare the effects of market volatilities on Infosys and N B 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 Infosys with a short position of N B. Check out your portfolio center. Please also check ongoing floating volatility patterns of Infosys and N B.
Diversification Opportunities for Infosys and N B
Poor diversification
The 3 months correlation between Infosys and NBIFIN is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Infosys Limited and N B I in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on N B I and Infosys 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 Infosys Limited are associated (or correlated) with N B. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of N B I has no effect on the direction of Infosys i.e., Infosys and N B go up and down completely randomly.
Pair Corralation between Infosys and N B
Assuming the 90 days trading horizon Infosys is expected to generate 18.95 times less return on investment than N B. But when comparing it to its historical volatility, Infosys Limited is 2.1 times less risky than N B. It trades about 0.03 of its potential returns per unit of risk. N B I is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 236,510 in N B I on September 26, 2024 and sell it today you would earn a total of 116,800 from holding N B I or generate 49.38% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 98.39% |
Values | Daily Returns |
Infosys Limited vs. N B I
Performance |
Timeline |
Infosys Limited |
N B I |
Infosys and N B Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Infosys and N B
The main advantage of trading using opposite Infosys and N B positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Infosys position performs unexpectedly, N B 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 N B will offset losses from the drop in N B's long position.Infosys vs. Royal Orchid Hotels | Infosys vs. EIH Associated Hotels | Infosys vs. AXISCADES Technologies Limited | Infosys vs. Yatra Online Limited |
N B vs. Tata Consultancy Services | N B vs. Quess Corp Limited | N B vs. Reliance Industries Limited | N B vs. Infosys Limited |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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