Correlation Between Infosys and Bharatiya Global

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Can any of the company-specific risk be diversified away by investing in both Infosys and Bharatiya Global 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 Infosys and Bharatiya Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Infosys Limited and Bharatiya Global Infomedia, you can compare the effects of market volatilities on Infosys and Bharatiya Global 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 Infosys with a short position of Bharatiya Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Infosys and Bharatiya Global.

Diversification Opportunities for Infosys and Bharatiya Global

0.08
  Correlation Coefficient

Significant diversification

The 3 months correlation between Infosys and Bharatiya is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Infosys Limited and Bharatiya Global Infomedia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bharatiya Global Inf and Infosys 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 Infosys Limited are associated (or correlated) with Bharatiya Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bharatiya Global Inf has no effect on the direction of Infosys i.e., Infosys and Bharatiya Global go up and down completely randomly.

Pair Corralation between Infosys and Bharatiya Global

Assuming the 90 days trading horizon Infosys is expected to generate 3.44 times less return on investment than Bharatiya Global. But when comparing it to its historical volatility, Infosys Limited is 1.24 times less risky than Bharatiya Global. It trades about 0.02 of its potential returns per unit of risk. Bharatiya Global Infomedia is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  250.00  in Bharatiya Global Infomedia on August 22, 2025 and sell it today you would earn a total of  169.00  from holding Bharatiya Global Infomedia or generate 67.6% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy98.98%
ValuesDaily Returns

Infosys Limited  vs.  Bharatiya Global Infomedia

 Performance 
       Timeline  
Infosys Limited 

Risk-Adjusted Performance

Soft

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Infosys Limited are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Infosys is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.
Bharatiya Global Inf 

Risk-Adjusted Performance

Solid

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Bharatiya Global Infomedia are ranked lower than 19 (%) of all global equities and portfolios over the last 90 days. Despite quite inconsistent fundamental drivers, Bharatiya Global disclosed solid returns over the last few months and may actually be approaching a breakup point.

Infosys and Bharatiya Global Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Infosys and Bharatiya Global

The main advantage of trading using opposite Infosys and Bharatiya Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Infosys position performs unexpectedly, Bharatiya Global 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 Bharatiya Global will offset losses from the drop in Bharatiya Global's long position.
The idea behind Infosys Limited and Bharatiya Global Infomedia 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.
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..

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