Correlation Between Apollo Hospitals and General Insurance
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By analyzing existing cross correlation between Apollo Hospitals Enterprise and General Insurance, you can compare the effects of market volatilities on Apollo Hospitals and General Insurance 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 General Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apollo Hospitals and General Insurance.
Diversification Opportunities for Apollo Hospitals and General Insurance
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Apollo and General is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Apollo Hospitals Enterprise and General Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on General Insurance 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 General Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of General Insurance has no effect on the direction of Apollo Hospitals i.e., Apollo Hospitals and General Insurance go up and down completely randomly.
Pair Corralation between Apollo Hospitals and General Insurance
Assuming the 90 days trading horizon Apollo Hospitals Enterprise is expected to under-perform the General Insurance. But the stock apears to be less risky and, when comparing its historical volatility, Apollo Hospitals Enterprise is 1.71 times less risky than General Insurance. The stock trades about -0.18 of its potential returns per unit of risk. The General Insurance is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 39,900 in General Insurance on November 28, 2024 and sell it today you would lose (765.00) from holding General Insurance or give up 1.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Apollo Hospitals Enterprise vs. General Insurance
Performance |
| Timeline |
| Apollo Hospitals Ent |
| General Insurance |
Apollo Hospitals and General Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apollo Hospitals and General Insurance
The main advantage of trading using opposite Apollo Hospitals and General Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apollo Hospitals position performs unexpectedly, General Insurance 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 General Insurance will offset losses from the drop in General Insurance's long position.| Apollo Hospitals vs. Satin Creditcare Network | Apollo Hospitals vs. Arman Financial Services | Apollo Hospitals vs. CSB Bank Limited | Apollo Hospitals vs. IDFC First Bank |
| General Insurance vs. CREDITACCESS GRAMEEN LIMITED | General Insurance vs. KNR Constructions Limited | General Insurance vs. RBL Bank Limited | General Insurance vs. Clean Science and |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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