Correlation Between IND+COMMBK CHINA and Amdocs

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

By analyzing existing cross correlation between INDCOMMBK CHINA ADR20 and Amdocs Limited, you can compare the effects of market volatilities on IND+COMMBK CHINA and Amdocs 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 IND+COMMBK CHINA with a short position of Amdocs. Check out your portfolio center. Please also check ongoing floating volatility patterns of IND+COMMBK CHINA and Amdocs.

Diversification Opportunities for IND+COMMBK CHINA and Amdocs

0.0

Correlation Coefficient

IND+COMMBK CHINA  Amdocs

Pay attention - limited upside

The 3 months correlation between IND+COMMBK and Amdocs is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding INDCOMMBK CHINA ADR20 and Amdocs Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amdocs Limited and IND+COMMBK CHINA 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 INDCOMMBK CHINA ADR20 are associated (or correlated) with Amdocs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amdocs Limited has no effect on the direction of IND+COMMBK CHINA i.e., IND+COMMBK CHINA and Amdocs go up and down completely randomly.

Pair Corralation between IND+COMMBK CHINA and Amdocs

If you would invest  1,175  in INDCOMMBK CHINA ADR20 on May 8, 2025 and sell it today you would earn a total of  145.00  from holding INDCOMMBK CHINA ADR20 or generate 12.34% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

INDCOMMBK CHINA ADR20  vs.  Amdocs Limited

INDCOMMBK CHINA ADR20

Risk-Adjusted Performance

Fair

Over the last 90 days INDCOMMBK CHINA ADR20 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly weak forward-looking signals, IND+COMMBK CHINA reported solid returns over the last few months and may actually be approaching a breakup point.

Amdocs Limited

Risk-Adjusted Performance

Weakest

Over the last 90 days Amdocs Limited has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Amdocs is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with IND+COMMBK CHINA and Amdocs

The main advantage of trading using opposite IND+COMMBK CHINA and Amdocs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IND+COMMBK CHINA position performs unexpectedly, Amdocs 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 Amdocs will offset losses from the drop in Amdocs' long position.

The idea behind INDCOMMBK CHINA ADR20 and Amdocs 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.