Fig. 4

Wavelet decomposition of return series. Hindustan Unilever Limited stock return (vertical axis) versus Sensex return, measured at different time scales based on wavelet decomposition. The wavelet scales are such that scale one (D1) corresponds to the time period of 1-2 days, scale two (D2) - 2 to 4 days, Scale three (D3)- 4 to 8 and S3 represents the undefined but longer time period. It can be noticed that when the return interval is increased in a given sample period, the number of sample points remains the same and hence no loss of information