Correlation Between Infosys and CARSALESCOM

Can any of the company-specific risk be diversified away by investing in both Infosys and CARSALESCOM 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 CARSALESCOM into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Infosys Limited and CARSALESCOM, you can compare the effects of market volatilities on Infosys and CARSALESCOM 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 CARSALESCOM. Check out your portfolio center. Please also check ongoing floating volatility patterns of Infosys and CARSALESCOM.

Diversification Opportunities for Infosys and CARSALESCOM

-0.67

Correlation Coefficient

Infosys  CARSALESCOM

Excellent diversification

The 3 months correlation between Infosys and CARSALESCOM is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Infosys Limited and CARSALESCOM in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CARSALESCOM 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 Limited are associated (or correlated) with CARSALESCOM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CARSALESCOM has no effect on the direction of Infosys i.e., Infosys and CARSALESCOM go up and down completely randomly.

Pair Corralation between Infosys and CARSALESCOM

Assuming the 90 days horizon Infosys Limited is expected to under-perform the CARSALESCOM. In addition to that, Infosys is 1.09 times more volatile than CARSALESCOM. It trades about -0.12 of its total potential returns per unit of risk. CARSALESCOM is currently generating about 0.07 per unit of volatility. If you would invest  2,060  in CARSALESCOM on June 10, 2025 and sell it today you would earn a total of  140.00  from holding CARSALESCOM or generate 6.8% return on investment over 90 days.

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

Infosys Limited  vs.  CARSALESCOM

Infosys Limited

Risk-Adjusted Performance

Weakest

Over the last 90 days Infosys Limited has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in October 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

CARSALESCOM

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in CARSALESCOM are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of rather fragile basic indicators, CARSALESCOM may actually be approaching a critical reversion point that can send shares even higher in October 2025.

Pair Trading with Infosys and CARSALESCOM

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

The idea behind Infosys Limited and CARSALESCOM 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.

Check out your portfolio center.

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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.