Correlation Between Intel and Infosys
Can any of the company-specific risk be diversified away by investing in both Intel 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 Intel and Infosys into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intel and Infosys Ltd ADR, you can compare the effects of market volatilities on Intel 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 Intel with a short position of Infosys. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intel and Infosys.
Diversification Opportunities for Intel and Infosys
Very good diversification
The 3 months correlation between Intel and Infosys is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Intel 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 Intel 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 Intel 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 Intel i.e., Intel and Infosys go up and down completely randomly.
Pair Corralation between Intel and Infosys
Given the investment horizon of 90 days Intel is expected to generate 2.82 times more return on investment than Infosys. However, Intel is 2.82 times more volatile than Infosys Ltd ADR. It trades about 0.19 of its potential returns per unit of risk. Infosys Ltd ADR is currently generating about -0.1 per unit of risk. If you would invest 2,326 in Intel on July 20, 2025 and sell it today you would earn a total of 1,375 from holding Intel or generate 59.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intel vs. Infosys Ltd ADR
Performance |
| Timeline |
| Intel |
| Infosys Ltd ADR |
Intel and Infosys Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intel and Infosys
The main advantage of trading using opposite Intel and Infosys positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intel 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.| Intel vs. Digi Power X | Intel vs. Japan Airlines Ltd | Intel vs. Amtech Systems | Intel vs. Courtside Group, Common |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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