Correlation Between Persistent Systems and Infosys
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By analyzing existing cross correlation between Persistent Systems Limited and Infosys Limited, you can compare the effects of market volatilities on Persistent Systems and Infosys 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 Persistent Systems with a short position of Infosys. Check out your portfolio center. Please also check ongoing floating volatility patterns of Persistent Systems and Infosys.
Diversification Opportunities for Persistent Systems and Infosys
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Persistent and Infosys is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Persistent Systems Limited and Infosys Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Infosys Limited and Persistent Systems 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 Persistent Systems Limited are associated (or correlated) with Infosys. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Infosys Limited has no effect on the direction of Persistent Systems i.e., Persistent Systems and Infosys go up and down completely randomly.
Pair Corralation between Persistent Systems and Infosys
Assuming the 90 days trading horizon Persistent Systems Limited is expected to generate 1.6 times more return on investment than Infosys. However, Persistent Systems is 1.6 times more volatile than Infosys Limited. It trades about 0.07 of its potential returns per unit of risk. Infosys Limited is currently generating about 0.05 per unit of risk. 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 |
Persistent Systems Limited vs. Infosys Limited
Performance |
| Timeline |
| Persistent Systems |
| Infosys Limited |
Persistent Systems and Infosys Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Persistent Systems and Infosys
The main advantage of trading using opposite Persistent Systems and Infosys positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Persistent Systems position performs unexpectedly, Infosys 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 Infosys will offset losses from the drop in Infosys' long position.| Persistent Systems vs. Rajnandini Metal Limited | Persistent Systems vs. Shyam Metalics and | Persistent Systems vs. PNC Infratech Limited | Persistent Systems vs. AXISCADES Technologies Limited |
| Infosys vs. Sintex Plastics Technology | Infosys vs. Ravi Kumar Distilleries | Infosys vs. Imagicaaworld Entertainment Limited | Infosys vs. Tera Software 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 Stocks Directory module to find actively traded stocks across global markets.
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