Correlation Between National Storage and Infosys
Can any of the company-specific risk be diversified away by investing in both National Storage 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 National Storage and Infosys into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between National Storage REIT and Infosys Ltd ADR, you can compare the effects of market volatilities on National Storage 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 National Storage with a short position of Infosys. Check out your portfolio center. Please also check ongoing floating volatility patterns of National Storage and Infosys.
Diversification Opportunities for National Storage and Infosys
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between National and Infosys is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding National Storage REIT 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 National Storage 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 National Storage REIT 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 National Storage i.e., National Storage and Infosys go up and down completely randomly.
Pair Corralation between National Storage and Infosys
Assuming the 90 days horizon National Storage REIT is expected to generate 2.73 times more return on investment than Infosys. However, National Storage is 2.73 times more volatile than Infosys Ltd ADR. It trades about 0.08 of its potential returns per unit of risk. Infosys Ltd ADR is currently generating about -0.05 per unit of risk. If you would invest 139.00 in National Storage REIT on May 27, 2025 and sell it today you would earn a total of 22.00 from holding National Storage REIT or generate 15.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.44% |
| Values | Daily Returns |
National Storage REIT vs. Infosys Ltd ADR
Performance |
| Timeline |
| National Storage REIT |
| Infosys Ltd ADR |
National Storage and Infosys Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with National Storage and Infosys
The main advantage of trading using opposite National Storage and Infosys positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National Storage 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.| National Storage vs. CECO Environmental Corp | National Storage vs. Teleflex Incorporated | National Storage vs. ArcelorMittal SA ADR | National Storage vs. POSCO Holdings |
| Infosys vs. Wipro Limited ADR | Infosys vs. Cognizant Technology Solutions | Infosys vs. Accenture plc | Infosys vs. Fiserv, |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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