Correlation Between Infosys and Jack Henry
Can any of the company-specific risk be diversified away by investing in both Infosys and Jack Henry 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 Infosys and Jack Henry into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Infosys Ltd ADR and Jack Henry Associates, you can compare the effects of market volatilities on Infosys and Jack Henry 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 Jack Henry. Check out your portfolio center. Please also check ongoing floating volatility patterns of Infosys and Jack Henry.
Diversification Opportunities for Infosys and Jack Henry
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Infosys and Jack is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Infosys Ltd ADR and Jack Henry Associates in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jack Henry Associates 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 Ltd ADR are associated (or correlated) with Jack Henry. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jack Henry Associates has no effect on the direction of Infosys i.e., Infosys and Jack Henry go up and down completely randomly.
Pair Corralation between Infosys and Jack Henry
Given the investment horizon of 90 days Infosys Ltd ADR is expected to generate 1.04 times more return on investment than Jack Henry. However, Infosys is 1.04 times more volatile than Jack Henry Associates. It trades about 0.03 of its potential returns per unit of risk. Jack Henry Associates is currently generating about 0.0 per unit of risk. If you would invest 1,864 in Infosys Ltd ADR on August 24, 2024 and sell it today you would earn a total of 332.00 from holding Infosys Ltd ADR or generate 17.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Infosys Ltd ADR vs. Jack Henry Associates
Performance |
| Timeline |
| Infosys Ltd ADR |
| Jack Henry Associates |
Infosys and Jack Henry Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Infosys and Jack Henry
The main advantage of trading using opposite Infosys and Jack Henry positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Infosys position performs unexpectedly, Jack Henry 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 Jack Henry will offset losses from the drop in Jack Henry's long position.| Infosys vs. Concentrix | Infosys vs. Accenture plc | Infosys vs. International Business Machines | Infosys vs. Cognizant Technology Solutions |
| Jack Henry vs. CACI International | Jack Henry vs. CDW Corp | Jack Henry vs. Broadridge Financial Solutions | Jack Henry vs. ExlService 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 the Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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