Correlation Between One 97 and Infomedia Press

Can any of the company-specific risk be diversified away by investing in both One 97 and Infomedia Press 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 One 97 and Infomedia Press into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between One 97 Communications and Infomedia Press Limited, you can compare the effects of market volatilities on One 97 and Infomedia Press 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 One 97 with a short position of Infomedia Press. Check out your portfolio center. Please also check ongoing floating volatility patterns of One 97 and Infomedia Press.

Diversification Opportunities for One 97 and Infomedia Press

0.56

Correlation Coefficient

One 97  Infomedia Press

Very weak diversification

The 3 months correlation between One and Infomedia is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding One 97 Communications and Infomedia Press Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Infomedia Press and One 97 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 One 97 Communications are associated (or correlated) with Infomedia Press. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Infomedia Press has no effect on the direction of One 97 i.e., One 97 and Infomedia Press go up and down completely randomly.

Pair Corralation between One 97 and Infomedia Press

Assuming the 90 days trading horizon One 97 Communications is expected to under-perform the Infomedia Press. In addition to that, One 97 is 1.09 times more volatile than Infomedia Press Limited. It trades about -0.11 of its total potential returns per unit of risk. Infomedia Press Limited is currently generating about -0.1 per unit of volatility. If you would invest  766.00  in Infomedia Press Limited on December 26, 2024 and sell it today you would lose (151.00) from holding Infomedia Press Limited or give up 19.71% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	98.39%
Values	Daily Returns

One 97 Communications  vs.  Infomedia Press Limited

One 97 Communications

Risk-Adjusted Performance

Very Weak

Over the last 90 days One 97 Communications has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in April 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Infomedia Press

Risk-Adjusted Performance

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 weak performance in the last few months, the Stock's fundamental indicators remain rather sound which may send shares a bit higher in April 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with One 97 and Infomedia Press

The main advantage of trading using opposite One 97 and Infomedia Press positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if One 97 position performs unexpectedly, Infomedia Press 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 Infomedia Press will offset losses from the drop in Infomedia Press' long position.

The idea behind One 97 Communications and Infomedia Press 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.