Correlation Between Infosys and Bikaji Foods
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By analyzing existing cross correlation between Infosys Limited and Bikaji Foods International, you can compare the effects of market volatilities on Infosys and Bikaji Foods 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 Bikaji Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Infosys and Bikaji Foods.
Diversification Opportunities for Infosys and Bikaji Foods
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Infosys and Bikaji is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Infosys Limited and Bikaji Foods International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bikaji Foods Interna 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 Bikaji Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bikaji Foods Interna has no effect on the direction of Infosys i.e., Infosys and Bikaji Foods go up and down completely randomly.
Pair Corralation between Infosys and Bikaji Foods
Assuming the 90 days trading horizon Infosys is expected to generate 2.99 times less return on investment than Bikaji Foods. But when comparing it to its historical volatility, Infosys Limited is 1.36 times less risky than Bikaji Foods. It trades about 0.04 of its potential returns per unit of risk. Bikaji Foods International is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 38,271 in Bikaji Foods International on September 3, 2024 and sell it today you would earn a total of 41,999 from holding Bikaji Foods International or generate 109.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.59% |
| Values | Daily Returns |
Infosys Limited vs. Bikaji Foods International
Performance |
| Timeline |
| Infosys Limited |
| Bikaji Foods Interna |
Infosys and Bikaji Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Infosys and Bikaji Foods
The main advantage of trading using opposite Infosys and Bikaji Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Infosys position performs unexpectedly, Bikaji Foods 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 Bikaji Foods will offset losses from the drop in Bikaji Foods' long position.| Infosys vs. Jindal Steel Power | Infosys vs. Embassy Office Parks | Infosys vs. Archean Chemical Industries | Infosys vs. Mahamaya Steel Industries |
| Bikaji Foods vs. Tata Consultancy Services | Bikaji Foods vs. Quess Corp Limited | Bikaji Foods vs. Reliance Industries Limited | Bikaji Foods 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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