Correlation Between CLPS and Infosys

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

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

Diversification Opportunities for CLPS and Infosys

0.41

Correlation Coefficient

CLPS  Infosys

Very weak diversification

The 3 months correlation between CLPS and Infosys is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding CLPS Inc 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 CLPS 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 CLPS Inc 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 CLPS i.e., CLPS and Infosys go up and down completely randomly.

Pair Corralation between CLPS and Infosys

Given the investment horizon of 90 days CLPS Inc is expected to generate 2.02 times more return on investment than Infosys. However, CLPS is 2.02 times more volatile than Infosys Ltd ADR. It trades about 0.01 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  94.00  in CLPS Inc on May 19, 2025 and sell it today you would lose (1.00) from holding CLPS Inc or give up 1.06% of portfolio value over 90 days.

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

CLPS Inc  vs.  Infosys Ltd ADR

CLPS Inc

Risk-Adjusted Performance

Weakest

Over the last 90 days CLPS Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, CLPS is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Infosys Ltd ADR

Risk-Adjusted Performance

Weakest

Over the last 90 days Infosys Ltd ADR has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's technical and fundamental indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Pair Trading with CLPS and Infosys

The main advantage of trading using opposite CLPS and Infosys positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CLPS 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 CLPS Inc and Infosys Ltd ADR 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.