Correlation Between Infinite Networks and CGS International

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

By analyzing existing cross correlation between Infinite Networks and CGS International, you can compare the effects of market volatilities on Infinite Networks and CGS International 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 Infinite Networks with a short position of CGS International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Infinite Networks and CGS International.

Diversification Opportunities for Infinite Networks and CGS International

1.0

Correlation Coefficient

Infinite Networks  CGS International

No risk reduction

The 3 months correlation between Infinite and CGS is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding Infinite Networks and CGS International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CGS International and Infinite Networks 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 Infinite Networks are associated (or correlated) with CGS International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CGS International has no effect on the direction of Infinite Networks i.e., Infinite Networks and CGS International go up and down completely randomly.

Pair Corralation between Infinite Networks and CGS International

If you would invest  0.01  in CGS International on August 26, 2025 and sell it today you would earn a total of  0.00  from holding CGS International or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	98.46%
Values	Daily Returns

Infinite Networks  vs.  CGS International

Infinite Networks

Risk-Adjusted Performance

Weakest

Over the last 90 days Infinite Networks has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Infinite Networks is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

CGS International

Risk-Adjusted Performance

Weakest

Over the last 90 days CGS International has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, CGS International is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Infinite Networks and CGS International

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

The idea behind Infinite Networks and CGS International 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.