Correlation Between Bajaj Holdings and Apollo Hospitals
Specify exactly 2 symbols:
By analyzing existing cross correlation between Bajaj Holdings Investment and Apollo Hospitals Enterprise, you can compare the effects of market volatilities on Bajaj Holdings and Apollo Hospitals 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 Bajaj Holdings with a short position of Apollo Hospitals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bajaj Holdings and Apollo Hospitals.
Diversification Opportunities for Bajaj Holdings and Apollo Hospitals
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bajaj and Apollo is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Bajaj Holdings Investment and Apollo Hospitals Enterprise in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apollo Hospitals Ent and Bajaj Holdings 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 Bajaj Holdings Investment are associated (or correlated) with Apollo Hospitals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apollo Hospitals Ent has no effect on the direction of Bajaj Holdings i.e., Bajaj Holdings and Apollo Hospitals go up and down completely randomly.
Pair Corralation between Bajaj Holdings and Apollo Hospitals
Assuming the 90 days trading horizon Bajaj Holdings Investment is expected to generate 3.57 times more return on investment than Apollo Hospitals. However, Bajaj Holdings is 3.57 times more volatile than Apollo Hospitals Enterprise. It trades about 0.03 of its potential returns per unit of risk. Apollo Hospitals Enterprise is currently generating about -0.08 per unit of risk. If you would invest 1,115,500 in Bajaj Holdings Investment on October 11, 2024 and sell it today you would earn a total of 11,580 from holding Bajaj Holdings Investment or generate 1.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Bajaj Holdings Investment vs. Apollo Hospitals Enterprise
Performance |
| Timeline |
| Bajaj Holdings Investment |
| Apollo Hospitals Ent |
Bajaj Holdings and Apollo Hospitals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bajaj Holdings and Apollo Hospitals
The main advantage of trading using opposite Bajaj Holdings and Apollo Hospitals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bajaj Holdings position performs unexpectedly, Apollo Hospitals 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 Apollo Hospitals will offset losses from the drop in Apollo Hospitals' long position.| Bajaj Holdings vs. Rashtriya Chemicals and | Bajaj Holdings vs. Tree House Education | Bajaj Holdings vs. IOL Chemicals and | Bajaj Holdings vs. Ortel Communications Limited |
| Apollo Hospitals vs. Bajaj Holdings Investment | Apollo Hospitals vs. 21st Century Management | Apollo Hospitals vs. Jindal Poly Investment | Apollo Hospitals vs. Man Infraconstruction 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| CEOs Directory Screen CEOs from public companies around the world |