Correlation Between Infosys and Persistent Systems
Specify exactly 2 symbols:
By analyzing existing cross correlation between Infosys Limited and Persistent Systems Limited, you can compare the effects of market volatilities on Infosys and Persistent Systems 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 Persistent Systems. Check out your portfolio center. Please also check ongoing floating volatility patterns of Infosys and Persistent Systems.
Diversification Opportunities for Infosys and Persistent Systems
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Infosys and Persistent is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Infosys Limited and Persistent Systems Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Persistent Systems 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 Persistent Systems. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Persistent Systems has no effect on the direction of Infosys i.e., Infosys and Persistent Systems go up and down completely randomly.
Pair Corralation between Infosys and Persistent Systems
Assuming the 90 days trading horizon Infosys is expected to generate 2.52 times less return on investment than Persistent Systems. But when comparing it to its historical volatility, Infosys Limited is 1.6 times less risky than Persistent Systems. It trades about 0.05 of its potential returns per unit of risk. Persistent Systems Limited is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 429,615 in Persistent Systems Limited on November 3, 2024 and sell it today you would earn a total of 173,645 from holding Persistent Systems Limited or generate 40.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.59% |
| Values | Daily Returns |
Infosys Limited vs. Persistent Systems Limited
Performance |
| Timeline |
| Infosys Limited |
| Persistent Systems |
Infosys and Persistent Systems Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Infosys and Persistent Systems
The main advantage of trading using opposite Infosys and Persistent Systems positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Infosys position performs unexpectedly, Persistent Systems 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 Persistent Systems will offset losses from the drop in Persistent Systems' long position.| Infosys vs. Sintex Plastics Technology | Infosys vs. Ravi Kumar Distilleries | Infosys vs. Imagicaaworld Entertainment Limited | Infosys vs. Tera Software Limited |
| Persistent Systems vs. Rajnandini Metal Limited | Persistent Systems vs. Shyam Metalics and | Persistent Systems vs. PNC Infratech Limited | Persistent Systems vs. AXISCADES Technologies 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |