Correlation Between Infosys and LOBO EV

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

Diversification Opportunities for Infosys and LOBO EV

-0.2

Correlation Coefficient

Infosys  LOBO EV

Good diversification

The 3 months correlation between Infosys and LOBO is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Infosys Ltd ADR and LOBO EV TECHNOLOGIES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LOBO EV TECHNOLOGIES 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 LOBO EV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LOBO EV TECHNOLOGIES has no effect on the direction of Infosys i.e., Infosys and LOBO EV go up and down completely randomly.

Pair Corralation between Infosys and LOBO EV

Given the investment horizon of 90 days Infosys Ltd ADR is expected to under-perform the LOBO EV. But the stock apears to be less risky and, when comparing its historical volatility, Infosys Ltd ADR is 12.18 times less risky than LOBO EV. The stock trades about -0.05 of its potential returns per unit of risk. The LOBO EV TECHNOLOGIES is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest  90.00  in LOBO EV TECHNOLOGIES on May 27, 2025 and sell it today you would lose (36.00) from holding LOBO EV TECHNOLOGIES or give up 40.0% 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.  LOBO EV TECHNOLOGIES

Infosys Ltd ADR

Risk-Adjusted Performance

Weakest

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.

LOBO EV TECHNOLOGIES

Risk-Adjusted Performance

Weakest

Over the last 90 days LOBO EV TECHNOLOGIES has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy fundamental drivers, LOBO EV is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Infosys and LOBO EV

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

The idea behind Infosys Ltd ADR and LOBO EV TECHNOLOGIES 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.