Correlation Between Man Infraconstructio and ILFS Investment

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

By analyzing existing cross correlation between Man Infraconstruction Limited and ILFS Investment Managers, you can compare the effects of market volatilities on Man Infraconstructio and ILFS Investment 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 Man Infraconstructio with a short position of ILFS Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Man Infraconstructio and ILFS Investment.

Diversification Opportunities for Man Infraconstructio and ILFS Investment

-0.51

Correlation Coefficient

Man Infraconstructio  ILFS Investment

Excellent diversification

The 3 months correlation between Man and ILFS is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Man Infraconstruction Limited and ILFS Investment Managers in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ILFS Investment Managers and Man Infraconstructio 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 Man Infraconstruction Limited are associated (or correlated) with ILFS Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ILFS Investment Managers has no effect on the direction of Man Infraconstructio i.e., Man Infraconstructio and ILFS Investment go up and down completely randomly.

Pair Corralation between Man Infraconstructio and ILFS Investment

Assuming the 90 days trading horizon Man Infraconstruction Limited is expected to generate 1.15 times more return on investment than ILFS Investment. However, Man Infraconstructio is 1.15 times more volatile than ILFS Investment Managers. It trades about 0.06 of its potential returns per unit of risk. ILFS Investment Managers is currently generating about -0.09 per unit of risk. If you would invest  16,572  in Man Infraconstruction Limited on April 24, 2025 and sell it today you would earn a total of  1,235  from holding Man Infraconstruction Limited or generate 7.45% return on investment over 90 days.

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

Man Infraconstruction Limited  vs.  ILFS Investment Managers

Man Infraconstruction

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Man Infraconstruction Limited are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Even with relatively abnormal technical and fundamental indicators, Man Infraconstructio may actually be approaching a critical reversion point that can send shares even higher in August 2025.

ILFS Investment Managers

Risk-Adjusted Performance

Very Weak

Over the last 90 days ILFS Investment Managers has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unfluctuating performance, the Stock's technical and fundamental indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Pair Trading with Man Infraconstructio and ILFS Investment

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

The idea behind Man Infraconstruction Limited and ILFS Investment Managers 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.