Correlation Between Som Distilleries and Infomedia Press

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

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

Diversification Opportunities for Som Distilleries and Infomedia Press

0.74

Correlation Coefficient

Som Distilleries  Infomedia Press

Poor diversification

The 3 months correlation between Som and Infomedia is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Som Distilleries Breweries and Infomedia Press Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Infomedia Press and Som Distilleries 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 Som Distilleries Breweries are associated (or correlated) with Infomedia Press. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Infomedia Press has no effect on the direction of Som Distilleries i.e., Som Distilleries and Infomedia Press go up and down completely randomly.

Pair Corralation between Som Distilleries and Infomedia Press

Assuming the 90 days trading horizon Som Distilleries Breweries is expected to generate 1.0 times more return on investment than Infomedia Press. However, Som Distilleries Breweries is 1.0 times less risky than Infomedia Press. It trades about 0.12 of its potential returns per unit of risk. Infomedia Press Limited is currently generating about 0.07 per unit of risk. If you would invest  12,820  in Som Distilleries Breweries on April 20, 2025 and sell it today you would earn a total of  3,206  from holding Som Distilleries Breweries or generate 25.01% return on investment over 90 days.

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

Som Distilleries Breweries  vs.  Infomedia Press Limited

Som Distilleries Bre

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Som Distilleries Breweries are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively inconsistent basic indicators, Som Distilleries unveiled solid returns over the last few months and may actually be approaching a breakup point.

Infomedia Press

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Infomedia Press Limited are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of rather unfluctuating fundamental indicators, Infomedia Press exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Som Distilleries and Infomedia Press

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

The idea behind Som Distilleries Breweries and Infomedia Press 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.