Correlation Between Infosys and RCM Technologies

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

Diversification Opportunities for Infosys and RCM Technologies

-0.42

Correlation Coefficient

Infosys  RCM Technologies

Very good diversification

The 3 months correlation between Infosys and RCM is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Infosys Ltd ADR and RCM Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RCM 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 RCM Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RCM Technologies has no effect on the direction of Infosys i.e., Infosys and RCM Technologies go up and down completely randomly.

Pair Corralation between Infosys and RCM Technologies

Given the investment horizon of 90 days Infosys Ltd ADR is expected to under-perform the RCM Technologies. But the stock apears to be less risky and, when comparing its historical volatility, Infosys Ltd ADR is 1.6 times less risky than RCM Technologies. The stock trades about -0.03 of its potential returns per unit of risk. The RCM Technologies is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest  2,188  in RCM Technologies on September 19, 2025 and sell it today you would lose (157.00) from holding RCM Technologies or give up 7.18% of portfolio value over 90 days.

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

Infosys Ltd ADR  vs.  RCM Technologies

Infosys Ltd ADR

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Infosys Ltd ADR are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak technical and fundamental indicators, Infosys may actually be approaching a critical reversion point that can send shares even higher in January 2026.

RCM Technologies

Risk-Adjusted Performance

Weakest

Over the last 90 days RCM Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's primary indicators remain comparatively stable which may send shares a bit higher in January 2026. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Infosys and RCM Technologies

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

The idea behind Infosys Ltd ADR and RCM 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.