Correlation Between Fevertree Drinks and Infinity Bank

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

By analyzing existing cross correlation between Fevertree Drinks Plc and Infinity Bank, you can compare the effects of market volatilities on Fevertree Drinks and Infinity Bank 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 Fevertree Drinks with a short position of Infinity Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fevertree Drinks and Infinity Bank.

Diversification Opportunities for Fevertree Drinks and Infinity Bank

0.61

Correlation Coefficient

Fevertree Drinks  Infinity Bank

Poor diversification

The 3 months correlation between Fevertree and Infinity is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Fevertree Drinks Plc and Infinity Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Infinity Bank and Fevertree Drinks 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 Fevertree Drinks Plc are associated (or correlated) with Infinity Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Infinity Bank has no effect on the direction of Fevertree Drinks i.e., Fevertree Drinks and Infinity Bank go up and down completely randomly.

Pair Corralation between Fevertree Drinks and Infinity Bank

Assuming the 90 days horizon Fevertree Drinks Plc is expected to generate 4.27 times more return on investment than Infinity Bank. However, Fevertree Drinks is 4.27 times more volatile than Infinity Bank. It trades about 0.03 of its potential returns per unit of risk. Infinity Bank is currently generating about -0.18 per unit of risk. If you would invest  1,051  in Fevertree Drinks Plc on September 9, 2025 and sell it today you would earn a total of  37.00  from holding Fevertree Drinks Plc or generate 3.52% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	98.44%
Values	Daily Returns

Fevertree Drinks Plc  vs.  Infinity Bank

Fevertree Drinks Plc

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Fevertree Drinks Plc are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Fevertree Drinks may actually be approaching a critical reversion point that can send shares even higher in January 2026.

Infinity Bank

Risk-Adjusted Performance

Weakest

Over the last 90 days Infinity Bank has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest conflicting performance, the Stock's technical and fundamental indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with Fevertree Drinks and Infinity Bank

The main advantage of trading using opposite Fevertree Drinks and Infinity Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fevertree Drinks position performs unexpectedly, Infinity Bank 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 Infinity Bank will offset losses from the drop in Infinity Bank's long position.

The idea behind Fevertree Drinks Plc and Infinity Bank 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.