Correlation Between Indraprastha Medical and Uniinfo Telecom

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

By analyzing existing cross correlation between Indraprastha Medical and Uniinfo Telecom Services, you can compare the effects of market volatilities on Indraprastha Medical and Uniinfo Telecom 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 Indraprastha Medical with a short position of Uniinfo Telecom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Indraprastha Medical and Uniinfo Telecom.

Diversification Opportunities for Indraprastha Medical and Uniinfo Telecom

0.54

Correlation Coefficient

Indraprastha Medical  Uniinfo Telecom

Very weak diversification

The 3 months correlation between Indraprastha and Uniinfo is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Indraprastha Medical and Uniinfo Telecom Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Uniinfo Telecom Services and Indraprastha Medical 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 Indraprastha Medical are associated (or correlated) with Uniinfo Telecom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Uniinfo Telecom Services has no effect on the direction of Indraprastha Medical i.e., Indraprastha Medical and Uniinfo Telecom go up and down completely randomly.

Pair Corralation between Indraprastha Medical and Uniinfo Telecom

Assuming the 90 days trading horizon Indraprastha Medical is expected to generate 1.34 times less return on investment than Uniinfo Telecom. In addition to that, Indraprastha Medical is 1.06 times more volatile than Uniinfo Telecom Services. It trades about 0.08 of its total potential returns per unit of risk. Uniinfo Telecom Services is currently generating about 0.11 per unit of volatility. If you would invest  1,719  in Uniinfo Telecom Services on April 24, 2025 and sell it today you would earn a total of  301.00  from holding Uniinfo Telecom Services or generate 17.51% return on investment over 90 days.

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

Indraprastha Medical  vs.  Uniinfo Telecom Services

Indraprastha Medical

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Indraprastha Medical are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain fundamental indicators, Indraprastha Medical exhibited solid returns over the last few months and may actually be approaching a breakup point.

Uniinfo Telecom Services

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Uniinfo Telecom Services are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of very uncertain basic indicators, Uniinfo Telecom displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Indraprastha Medical and Uniinfo Telecom

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

The idea behind Indraprastha Medical and Uniinfo Telecom Services 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.