Correlation Between Oil Natural and Infosys
Can any of the company-specific risk be diversified away by investing in both Oil Natural 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 Oil Natural and Infosys into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oil Natural Gas and Infosys Limited, you can compare the effects of market volatilities on Oil Natural 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 Oil Natural with a short position of Infosys. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oil Natural and Infosys.
Diversification Opportunities for Oil Natural and Infosys
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Oil and Infosys is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Oil Natural Gas and Infosys Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Infosys Limited and Oil Natural 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 Oil Natural Gas 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 Oil Natural i.e., Oil Natural and Infosys go up and down completely randomly.
Pair Corralation between Oil Natural and Infosys
Assuming the 90 days trading horizon Oil Natural is expected to generate 1.21 times less return on investment than Infosys. But when comparing it to its historical volatility, Oil Natural Gas is 1.7 times less risky than Infosys. It trades about 0.09 of its potential returns per unit of risk. Infosys Limited is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 147,795 in Infosys Limited on August 31, 2025 and sell it today you would earn a total of 8,215 from holding Infosys Limited or generate 5.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.44% |
| Values | Daily Returns |
Oil Natural Gas vs. Infosys Limited
Performance |
| Timeline |
| Oil Natural Gas |
| Infosys Limited |
Oil Natural and Infosys Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oil Natural and Infosys
The main advantage of trading using opposite Oil Natural and Infosys positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oil Natural 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.| Oil Natural vs. Shyam Metalics and | Oil Natural vs. LLOYDS METALS AND | Oil Natural vs. One 97 Communications | Oil Natural vs. Madhav Copper Limited |
| Infosys vs. Akme Fintrade India | Infosys vs. Baazar Style Retail | Infosys vs. Cartrade Tech Limited | Infosys vs. United Breweries Limited |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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