Correlation Between ASSOC BR and Infosys

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

By analyzing existing cross correlation between ASSOC BR FOODS and Infosys Limited, you can compare the effects of market volatilities on ASSOC BR 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 ASSOC BR with a short position of Infosys. Check out your portfolio center. Please also check ongoing floating volatility patterns of ASSOC BR and Infosys.

Diversification Opportunities for ASSOC BR and Infosys

-0.78

Correlation Coefficient

ASSOC BR  Infosys

Pay attention - limited upside

The 3 months correlation between ASSOC and Infosys is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding ASSOC BR FOODS and Infosys Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Infosys Limited and ASSOC BR 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 ASSOC BR FOODS 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 ASSOC BR i.e., ASSOC BR and Infosys go up and down completely randomly.

Pair Corralation between ASSOC BR and Infosys

Assuming the 90 days trading horizon ASSOC BR FOODS is expected to generate 0.65 times more return on investment than Infosys. However, ASSOC BR FOODS is 1.54 times less risky than Infosys. It trades about 0.12 of its potential returns per unit of risk. Infosys Limited is currently generating about -0.09 per unit of risk. If you would invest  2,435  in ASSOC BR FOODS on May 17, 2025 and sell it today you would earn a total of  225.00  from holding ASSOC BR FOODS or generate 9.24% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

ASSOC BR FOODS  vs.  Infosys Limited

ASSOC BR FOODS

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in ASSOC BR FOODS are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, ASSOC BR may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Infosys Limited

Risk-Adjusted Performance

Weakest

Over the last 90 days Infosys Limited has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest unsteady performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Pair Trading with ASSOC BR and Infosys

The main advantage of trading using opposite ASSOC BR and Infosys positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ASSOC BR 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.

The idea behind ASSOC BR FOODS and Infosys 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.