Correlation Between Infosys and Jianzhi Education

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

Diversification Opportunities for Infosys and Jianzhi Education

-0.64

Correlation Coefficient

Infosys  Jianzhi Education

Excellent diversification

The 3 months correlation between Infosys and Jianzhi is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Infosys Ltd ADR and Jianzhi Education Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jianzhi Education 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 Jianzhi Education. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jianzhi Education has no effect on the direction of Infosys i.e., Infosys and Jianzhi Education go up and down completely randomly.

Pair Corralation between Infosys and Jianzhi Education

Given the investment horizon of 90 days Infosys Ltd ADR is expected to generate 0.2 times more return on investment than Jianzhi Education. However, Infosys Ltd ADR is 4.89 times less risky than Jianzhi Education. It trades about 0.0 of its potential returns per unit of risk. Jianzhi Education Technology is currently generating about -0.28 per unit of risk. If you would invest  1,735  in Infosys Ltd ADR on May 1, 2025 and sell it today you would lose (14.00) from holding Infosys Ltd ADR or give up 0.81% of portfolio value over 90 days.

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

Infosys Ltd ADR  vs.  Jianzhi Education Technology

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.

Jianzhi Education

Risk-Adjusted Performance

Very Weak

Over the last 90 days Jianzhi Education Technology has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating 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 current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Infosys and Jianzhi Education

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

The idea behind Infosys Ltd ADR and Jianzhi Education Technology 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.