Correlation Between Infosys and Patanjali Foods
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By analyzing existing cross correlation between Infosys Limited and Patanjali Foods Limited, you can compare the effects of market volatilities on Infosys and Patanjali 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 Patanjali Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Infosys and Patanjali Foods.
Diversification Opportunities for Infosys and Patanjali Foods
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Infosys and Patanjali is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Infosys Limited and Patanjali Foods Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Patanjali Foods 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 Patanjali Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Patanjali Foods has no effect on the direction of Infosys i.e., Infosys and Patanjali Foods go up and down completely randomly.
Pair Corralation between Infosys and Patanjali Foods
Assuming the 90 days trading horizon Infosys Limited is expected to generate 0.91 times more return on investment than Patanjali Foods. However, Infosys Limited is 1.1 times less risky than Patanjali Foods. It trades about 0.17 of its potential returns per unit of risk. Patanjali Foods Limited is currently generating about 0.06 per unit of risk. If you would invest 176,365 in Infosys Limited on September 3, 2024 and sell it today you would earn a total of 9,420 from holding Infosys Limited or generate 5.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
Infosys Limited vs. Patanjali Foods Limited
Performance |
| Timeline |
| Infosys Limited |
| Patanjali Foods |
Infosys and Patanjali Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Infosys and Patanjali Foods
The main advantage of trading using opposite Infosys and Patanjali Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Infosys position performs unexpectedly, Patanjali 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 Patanjali Foods will offset losses from the drop in Patanjali Foods' long position.| Infosys vs. Jindal Steel Power | Infosys vs. Embassy Office Parks | Infosys vs. Archean Chemical Industries | Infosys vs. Mahamaya Steel Industries |
| Patanjali Foods vs. Tata Consultancy Services | Patanjali Foods vs. Quess Corp Limited | Patanjali Foods vs. Reliance Industries Limited | Patanjali 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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