Correlation Between Infosys and Good Times

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

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

Diversification Opportunities for Infosys and Good Times

-0.13

Correlation Coefficient

Infosys  Good Times

Good diversification

The 3 months correlation between Infosys and Good is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Infosys Ltd ADR and Good Times Restaurants in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Good Times Restaurants and Infosys 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 Infosys Ltd ADR are associated (or correlated) with Good Times. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Good Times Restaurants has no effect on the direction of Infosys i.e., Infosys and Good Times go up and down completely randomly.

Pair Corralation between Infosys and Good Times

Given the investment horizon of 90 days Infosys Ltd ADR is expected to generate 0.38 times more return on investment than Good Times. However, Infosys Ltd ADR is 2.61 times less risky than Good Times. It trades about 0.07 of its potential returns per unit of risk. Good Times Restaurants is currently generating about -0.09 per unit of risk. If you would invest  1,643  in Infosys Ltd ADR on September 3, 2025 and sell it today you would earn a total of  105.00  from holding Infosys Ltd ADR or generate 6.39% return on investment over 90 days.

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

Infosys Ltd ADR  vs.  Good Times Restaurants

Infosys Ltd ADR

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Infosys Ltd ADR are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of fairly fragile technical and fundamental indicators, Infosys may actually be approaching a critical reversion point that can send shares even higher in January 2026.

Good Times Restaurants

Risk-Adjusted Performance

Weakest

Over the last 90 days Good Times Restaurants has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's forward indicators remain very healthy which may send shares a bit higher in January 2026. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Infosys and Good Times

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

The idea behind Infosys Ltd ADR and Good Times Restaurants 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.

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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.