Correlation Between Infosys and JIADE LIMITED

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

Diversification Opportunities for Infosys and JIADE LIMITED

-0.58

Correlation Coefficient

Infosys  JIADE LIMITED

Excellent diversification

The 3 months correlation between Infosys and JIADE is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Infosys Ltd ADR and JIADE LIMITED Common in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JIADE LIMITED Common 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 JIADE LIMITED. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JIADE LIMITED Common has no effect on the direction of Infosys i.e., Infosys and JIADE LIMITED go up and down completely randomly.

Pair Corralation between Infosys and JIADE LIMITED

Given the investment horizon of 90 days Infosys Ltd ADR is expected to generate 0.14 times more return on investment than JIADE LIMITED. However, Infosys Ltd ADR is 7.21 times less risky than JIADE LIMITED. It trades about 0.08 of its potential returns per unit of risk. JIADE LIMITED Common is currently generating about -0.01 per unit of risk. If you would invest  1,712  in Infosys Ltd ADR on April 24, 2025 and sell it today you would earn a total of  114.00  from holding Infosys Ltd ADR or generate 6.66% return on investment over 90 days.

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

Infosys Ltd ADR  vs.  JIADE LIMITED Common

Infosys Ltd ADR

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Infosys Ltd ADR are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain technical and fundamental indicators, Infosys may actually be approaching a critical reversion point that can send shares even higher in August 2025.

JIADE LIMITED Common

Risk-Adjusted Performance

Very Weak

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

Pair Trading with Infosys and JIADE LIMITED

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

The idea behind Infosys Ltd ADR and JIADE LIMITED Common 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.