Correlation Between Apollo Hospitals and CSB Bank
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By analyzing existing cross correlation between Apollo Hospitals Enterprise and CSB Bank Limited, you can compare the effects of market volatilities on Apollo Hospitals and CSB Bank 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 Apollo Hospitals with a short position of CSB Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apollo Hospitals and CSB Bank.
Diversification Opportunities for Apollo Hospitals and CSB Bank
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Apollo and CSB is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Apollo Hospitals Enterprise and CSB Bank Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CSB Bank Limited and Apollo Hospitals 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 Apollo Hospitals Enterprise are associated (or correlated) with CSB Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CSB Bank Limited has no effect on the direction of Apollo Hospitals i.e., Apollo Hospitals and CSB Bank go up and down completely randomly.
Pair Corralation between Apollo Hospitals and CSB Bank
Assuming the 90 days trading horizon Apollo Hospitals Enterprise is expected to under-perform the CSB Bank. But the stock apears to be less risky and, when comparing its historical volatility, Apollo Hospitals Enterprise is 1.27 times less risky than CSB Bank. The stock trades about -0.27 of its potential returns per unit of risk. The CSB Bank Limited is currently generating about -0.15 of returns per unit of risk over similar time horizon. If you would invest 32,135 in CSB Bank Limited on October 30, 2024 and sell it today you would lose (2,100) from holding CSB Bank Limited or give up 6.53% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Apollo Hospitals Enterprise vs. CSB Bank Limited
Performance |
| Timeline |
| Apollo Hospitals Ent |
| CSB Bank Limited |
Apollo Hospitals and CSB Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apollo Hospitals and CSB Bank
The main advantage of trading using opposite Apollo Hospitals and CSB Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apollo Hospitals position performs unexpectedly, CSB Bank 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 CSB Bank will offset losses from the drop in CSB Bank's long position.| Apollo Hospitals vs. Ratnamani Metals Tubes | Apollo Hospitals vs. Praxis Home Retail | Apollo Hospitals vs. Hilton Metal Forging | Apollo Hospitals vs. Manaksia Coated Metals |
| CSB Bank vs. Sudarshan Chemical Industries | CSB Bank vs. Chembond Chemicals | CSB Bank vs. Fineotex Chemical Limited | CSB Bank vs. V2 Retail Limited |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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