Correlation Between Infosys and High Wire

Can any of the company-specific risk be diversified away by investing in both Infosys and High Wire 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 High Wire 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 High Wire Networks, you can compare the effects of market volatilities on Infosys and High Wire 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 High Wire. Check out your portfolio center. Please also check ongoing floating volatility patterns of Infosys and High Wire.

Diversification Opportunities for Infosys and High Wire

-0.04

Correlation Coefficient

Infosys  High Wire

Good diversification

The 3 months correlation between Infosys and High is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Infosys Ltd ADR and High Wire Networks in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on High Wire Networks 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 High Wire. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of High Wire Networks has no effect on the direction of Infosys i.e., Infosys and High Wire go up and down completely randomly.

Pair Corralation between Infosys and High Wire

Given the investment horizon of 90 days Infosys Ltd ADR is expected to generate 0.09 times more return on investment than High Wire. However, Infosys Ltd ADR is 11.15 times less risky than High Wire. It trades about -0.03 of its potential returns per unit of risk. High Wire Networks is currently generating about -0.09 per unit of risk. If you would invest  1,763  in Infosys Ltd ADR on May 2, 2025 and sell it today you would lose (68.00) from holding Infosys Ltd ADR or give up 3.86% of portfolio value over 90 days.

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

Infosys Ltd ADR  vs.  High Wire Networks

Infosys Ltd ADR

Risk-Adjusted Performance

Very Weak

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 fairly strong technical and fundamental indicators, Infosys is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

High Wire Networks

Risk-Adjusted Performance

Very Weak

Over the last 90 days High Wire Networks has generated negative risk-adjusted returns adding no value to investors with long positions. Despite inconsistent performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in August 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with Infosys and High Wire

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

The idea behind Infosys Ltd ADR and High Wire Networks 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.