Correlation Between Apollo Hospitals and Lotus Eye
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By analyzing existing cross correlation between Apollo Hospitals Enterprise and Lotus Eye Hospital, you can compare the effects of market volatilities on Apollo Hospitals and Lotus Eye 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 Lotus Eye. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apollo Hospitals and Lotus Eye.
Diversification Opportunities for Apollo Hospitals and Lotus Eye
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Apollo and Lotus is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Apollo Hospitals Enterprise and Lotus Eye Hospital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lotus Eye Hospital 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 Lotus Eye. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lotus Eye Hospital has no effect on the direction of Apollo Hospitals i.e., Apollo Hospitals and Lotus Eye go up and down completely randomly.
Pair Corralation between Apollo Hospitals and Lotus Eye
Assuming the 90 days trading horizon Apollo Hospitals is expected to generate 14.32 times less return on investment than Lotus Eye. But when comparing it to its historical volatility, Apollo Hospitals Enterprise is 1.1 times less risky than Lotus Eye. It trades about 0.01 of its potential returns per unit of risk. Lotus Eye Hospital is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 6,747 in Lotus Eye Hospital on August 30, 2024 and sell it today you would earn a total of 322.00 from holding Lotus Eye Hospital or generate 4.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Apollo Hospitals Enterprise vs. Lotus Eye Hospital
Performance |
| Timeline |
| Apollo Hospitals Ent |
| Lotus Eye Hospital |
Apollo Hospitals and Lotus Eye Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apollo Hospitals and Lotus Eye
The main advantage of trading using opposite Apollo Hospitals and Lotus Eye positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apollo Hospitals position performs unexpectedly, Lotus Eye 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 Lotus Eye will offset losses from the drop in Lotus Eye's long position.| Apollo Hospitals vs. State Bank of | Apollo Hospitals vs. Life Insurance | Apollo Hospitals vs. HDFC Bank Limited | Apollo Hospitals vs. ICICI Bank Limited |
| Lotus Eye vs. State Bank of | Lotus Eye vs. Life Insurance | Lotus Eye vs. HDFC Bank Limited | Lotus Eye vs. ICICI Bank 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 Stocks Directory module to find actively traded stocks across global markets.
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