Correlation Between Infosys and FiscalNote Holdings
Can any of the company-specific risk be diversified away by investing in both Infosys and FiscalNote Holdings 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 FiscalNote Holdings 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 FiscalNote Holdings, you can compare the effects of market volatilities on Infosys and FiscalNote Holdings 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 FiscalNote Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Infosys and FiscalNote Holdings.
Diversification Opportunities for Infosys and FiscalNote Holdings
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Infosys and FiscalNote is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Infosys Ltd ADR and FiscalNote Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FiscalNote Holdings 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 FiscalNote Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FiscalNote Holdings has no effect on the direction of Infosys i.e., Infosys and FiscalNote Holdings go up and down completely randomly.
Pair Corralation between Infosys and FiscalNote Holdings
Given the investment horizon of 90 days Infosys Ltd ADR is expected to generate 0.2 times more return on investment than FiscalNote Holdings. However, Infosys Ltd ADR is 4.98 times less risky than FiscalNote Holdings. It trades about 0.04 of its potential returns per unit of risk. FiscalNote Holdings is currently generating about -0.01 per unit of risk. If you would invest 1,738 in Infosys Ltd ADR on September 1, 2024 and sell it today you would earn a total of 469.00 from holding Infosys Ltd ADR or generate 26.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Infosys Ltd ADR vs. FiscalNote Holdings
Performance |
| Timeline |
| Infosys Ltd ADR |
| FiscalNote Holdings |
Infosys and FiscalNote Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Infosys and FiscalNote Holdings
The main advantage of trading using opposite Infosys and FiscalNote Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Infosys position performs unexpectedly, FiscalNote Holdings 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 FiscalNote Holdings will offset losses from the drop in FiscalNote Holdings' long position.| Infosys vs. FiscalNote Holdings | Infosys vs. Innodata | Infosys vs. Aurora Innovation | Infosys vs. Conduent |
| FiscalNote Holdings vs. Innodata | FiscalNote Holdings vs. International Business Machines | FiscalNote Holdings vs. BigBearai Holdings | FiscalNote Holdings vs. CLPS Inc |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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