Correlation Between MEDI ASSIST and Infosys

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

By analyzing existing cross correlation between MEDI ASSIST HEALTHCARE and Infosys Limited, you can compare the effects of market volatilities on MEDI ASSIST 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 MEDI ASSIST with a short position of Infosys. Check out your portfolio center. Please also check ongoing floating volatility patterns of MEDI ASSIST and Infosys.

Diversification Opportunities for MEDI ASSIST and Infosys

-0.04

Correlation Coefficient

MEDI ASSIST  Infosys

Good diversification

The 3 months correlation between MEDI and Infosys is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding MEDI ASSIST HEALTHCARE and Infosys Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Infosys Limited and MEDI ASSIST 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 MEDI ASSIST HEALTHCARE 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 MEDI ASSIST i.e., MEDI ASSIST and Infosys go up and down completely randomly.

Pair Corralation between MEDI ASSIST and Infosys

Assuming the 90 days trading horizon MEDI ASSIST HEALTHCARE is expected to generate 1.53 times more return on investment than Infosys. However, MEDI ASSIST is 1.53 times more volatile than Infosys Limited. It trades about 0.0 of its potential returns per unit of risk. Infosys Limited is currently generating about -0.02 per unit of risk. If you would invest  61,020  in MEDI ASSIST HEALTHCARE on October 23, 2024 and sell it today you would lose (715.00) from holding MEDI ASSIST HEALTHCARE or give up 1.17% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.36%
Values	Daily Returns

MEDI ASSIST HEALTHCARE  vs.  Infosys Limited

MEDI ASSIST HEALTHCARE

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days MEDI ASSIST HEALTHCARE has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable forward indicators, MEDI ASSIST is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Infosys Limited

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Infosys Limited has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Infosys is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with MEDI ASSIST and Infosys

The main advantage of trading using opposite MEDI ASSIST and Infosys positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MEDI ASSIST 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.

The idea behind MEDI ASSIST HEALTHCARE and Infosys Limited 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.