Correlation Between Cleantech Power and Infosys
Can any of the company-specific risk be diversified away by investing in both Cleantech Power and Infosys 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 Cleantech Power and Infosys into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cleantech Power Corp and Infosys Ltd ADR, you can compare the effects of market volatilities on Cleantech Power 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 Cleantech Power with a short position of Infosys. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cleantech Power and Infosys.
Diversification Opportunities for Cleantech Power and Infosys
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Cleantech and Infosys is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Cleantech Power Corp and Infosys Ltd ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Infosys Ltd ADR and Cleantech Power 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 Cleantech Power Corp 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 Ltd ADR has no effect on the direction of Cleantech Power i.e., Cleantech Power and Infosys go up and down completely randomly.
Pair Corralation between Cleantech Power and Infosys
If you would invest 2,072 in Infosys Ltd ADR on September 3, 2024 and sell it today you would earn a total of 135.00 from holding Infosys Ltd ADR or generate 6.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cleantech Power Corp vs. Infosys Ltd ADR
Performance |
| Timeline |
| Cleantech Power Corp |
| Infosys Ltd ADR |
Cleantech Power and Infosys Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cleantech Power and Infosys
The main advantage of trading using opposite Cleantech Power and Infosys positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cleantech Power 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.| Cleantech Power vs. Bluerock Homes Trust | Cleantech Power vs. Summit Hotel Properties | Cleantech Power vs. Altria Group | Cleantech Power vs. Stepstone Group |
| Infosys vs. Accenture plc | Infosys vs. International Business Machines | Infosys vs. ASGN Inc | Infosys 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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