Correlation Between Infomedia Press and MIRC Electronics

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

By analyzing existing cross correlation between Infomedia Press Limited and MIRC Electronics Limited, you can compare the effects of market volatilities on Infomedia Press and MIRC Electronics 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 Infomedia Press with a short position of MIRC Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Infomedia Press and MIRC Electronics.

Diversification Opportunities for Infomedia Press and MIRC Electronics

0.18

Correlation Coefficient

Infomedia Press  MIRC Electronics

Average diversification

The 3 months correlation between Infomedia and MIRC is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Infomedia Press Limited and MIRC Electronics Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MIRC Electronics and Infomedia Press 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 Infomedia Press Limited are associated (or correlated) with MIRC Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MIRC Electronics has no effect on the direction of Infomedia Press i.e., Infomedia Press and MIRC Electronics go up and down completely randomly.

Pair Corralation between Infomedia Press and MIRC Electronics

Assuming the 90 days trading horizon Infomedia Press is expected to generate 3.15 times less return on investment than MIRC Electronics. In addition to that, Infomedia Press is 1.08 times more volatile than MIRC Electronics Limited. It trades about 0.03 of its total potential returns per unit of risk. MIRC Electronics Limited is currently generating about 0.1 per unit of volatility. If you would invest  1,516  in MIRC Electronics Limited on April 25, 2025 and sell it today you would earn a total of  271.00  from holding MIRC Electronics Limited or generate 17.88% return on investment over 90 days.

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

Infomedia Press Limited  vs.  MIRC Electronics Limited

Infomedia Press

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Infomedia Press Limited are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound fundamental indicators, Infomedia Press is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

MIRC Electronics

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in MIRC Electronics Limited are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak fundamental indicators, MIRC Electronics exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Infomedia Press and MIRC Electronics

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

The idea behind Infomedia Press Limited and MIRC Electronics Limited 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.