Correlation Between Infomedia Press and Kaushalya Infrastructure

Can any of the company-specific risk be diversified away by investing in both Infomedia Press and Kaushalya Infrastructure 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 Infomedia Press and Kaushalya Infrastructure into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Infomedia Press Limited and Kaushalya Infrastructure Development, you can compare the effects of market volatilities on Infomedia Press and Kaushalya Infrastructure 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 Infomedia Press with a short position of Kaushalya Infrastructure. Check out your portfolio center. Please also check ongoing floating volatility patterns of Infomedia Press and Kaushalya Infrastructure.

Diversification Opportunities for Infomedia Press and Kaushalya Infrastructure

0.0

Correlation Coefficient

Infomedia Press  Kaushalya Infrastructure

Pay attention - limited upside

The 3 months correlation between Infomedia and Kaushalya is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Infomedia Press Limited and Kaushalya Infrastructure Devel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kaushalya Infrastructure and Infomedia Press 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 Infomedia Press Limited are associated (or correlated) with Kaushalya Infrastructure. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kaushalya Infrastructure has no effect on the direction of Infomedia Press i.e., Infomedia Press and Kaushalya Infrastructure go up and down completely randomly.

Pair Corralation between Infomedia Press and Kaushalya Infrastructure

Assuming the 90 days trading horizon Infomedia Press Limited is expected to generate 1.88 times more return on investment than Kaushalya Infrastructure. However, Infomedia Press is 1.88 times more volatile than Kaushalya Infrastructure Development. It trades about 0.32 of its potential returns per unit of risk. Kaushalya Infrastructure Development is currently generating about -0.3 per unit of risk. If you would invest  633.00  in Infomedia Press Limited on September 29, 2024 and sell it today you would earn a total of  144.00  from holding Infomedia Press Limited or generate 22.75% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Infomedia Press Limited  vs.  Kaushalya Infrastructure Devel

Infomedia Press

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Infomedia Press Limited has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest conflicting performance, the Stock's fundamental indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Kaushalya Infrastructure

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Kaushalya Infrastructure Development has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest unsteady performance, the Stock's essential indicators remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.

Pair Trading with Infomedia Press and Kaushalya Infrastructure

The main advantage of trading using opposite Infomedia Press and Kaushalya Infrastructure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Infomedia Press position performs unexpectedly, Kaushalya Infrastructure 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 Kaushalya Infrastructure will offset losses from the drop in Kaushalya Infrastructure's long position.

The idea behind Infomedia Press Limited and Kaushalya Infrastructure Development pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.