Correlation Between Fortis Healthcare and Aptech
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By analyzing existing cross correlation between Fortis Healthcare Limited and Aptech Limited, you can compare the effects of market volatilities on Fortis Healthcare and Aptech 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 Fortis Healthcare with a short position of Aptech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fortis Healthcare and Aptech.
Diversification Opportunities for Fortis Healthcare and Aptech
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Fortis and Aptech is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Fortis Healthcare Limited and Aptech Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aptech Limited and Fortis 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 Fortis Healthcare Limited are associated (or correlated) with Aptech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aptech Limited has no effect on the direction of Fortis Healthcare i.e., Fortis Healthcare and Aptech go up and down completely randomly.
Pair Corralation between Fortis Healthcare and Aptech
Assuming the 90 days trading horizon Fortis Healthcare Limited is expected to generate 0.65 times more return on investment than Aptech. However, Fortis Healthcare Limited is 1.54 times less risky than Aptech. It trades about 0.11 of its potential returns per unit of risk. Aptech Limited is currently generating about -0.04 per unit of risk. If you would invest 43,461 in Fortis Healthcare Limited on September 25, 2024 and sell it today you would earn a total of 24,429 from holding Fortis Healthcare Limited or generate 56.21% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Fortis Healthcare Limited vs. Aptech Limited
Performance |
Timeline |
Fortis Healthcare |
Aptech Limited |
Fortis Healthcare and Aptech Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Fortis Healthcare and Aptech
The main advantage of trading using opposite Fortis Healthcare and Aptech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fortis Healthcare position performs unexpectedly, Aptech 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 Aptech will offset losses from the drop in Aptech's long position.Fortis Healthcare vs. Hathway Cable Datacom | Fortis Healthcare vs. Sanginita Chemicals Limited | Fortis Healthcare vs. Neogen Chemicals Limited | Fortis Healthcare vs. Hexa Tradex Limited |
Aptech vs. Reliance Industries Limited | Aptech vs. Oil Natural Gas | Aptech vs. ICICI Bank Limited | Aptech vs. Bharti Airtel 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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