Correlation Between Max Healthcare and Apollo Hospitals
Specify exactly 2 symbols:
By analyzing existing cross correlation between Max Healthcare Institute and Apollo Hospitals Enterprise, you can compare the effects of market volatilities on Max Healthcare 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 Max Healthcare with a short position of Apollo Hospitals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Max Healthcare and Apollo Hospitals.
Diversification Opportunities for Max Healthcare and Apollo Hospitals
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Max and Apollo is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Max Healthcare Institute 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 Max Healthcare 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 Max Healthcare Institute 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 Max Healthcare i.e., Max Healthcare and Apollo Hospitals go up and down completely randomly.
Pair Corralation between Max Healthcare and Apollo Hospitals
Assuming the 90 days trading horizon Max Healthcare Institute is expected to generate 1.73 times more return on investment than Apollo Hospitals. However, Max Healthcare is 1.73 times more volatile than Apollo Hospitals Enterprise. It trades about 0.08 of its potential returns per unit of risk. Apollo Hospitals Enterprise is currently generating about 0.07 per unit of risk. If you would invest 66,769 in Max Healthcare Institute on September 2, 2024 and sell it today you would earn a total of 31,206 from holding Max Healthcare Institute or generate 46.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.59% |
| Values | Daily Returns |
Max Healthcare Institute vs. Apollo Hospitals Enterprise
Performance |
| Timeline |
| Max Healthcare Institute |
| Apollo Hospitals Ent |
Max Healthcare and Apollo Hospitals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Max Healthcare and Apollo Hospitals
The main advantage of trading using opposite Max Healthcare and Apollo Hospitals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Max Healthcare 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.| Max Healthcare vs. Advani Hotels Resorts | Max Healthcare vs. Viceroy Hotels Limited | Max Healthcare vs. Navneet Education Limited | Max Healthcare vs. V2 Retail Limited |
| Apollo Hospitals vs. State Bank of | Apollo Hospitals vs. Life Insurance | Apollo Hospitals vs. HDFC Bank Limited | Apollo Hospitals 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |