Correlation Between Manaksia Coated and Apollo Hospitals

Can any of the company-specific risk be diversified away by investing in both Manaksia Coated and Apollo Hospitals at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Manaksia Coated and Apollo Hospitals into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Manaksia Coated Metals and Apollo Hospitals Enterprise, you can compare the effects of market volatilities on Manaksia Coated 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 Manaksia Coated with a short position of Apollo Hospitals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Manaksia Coated and Apollo Hospitals.

Diversification Opportunities for Manaksia Coated and Apollo Hospitals

-0.01

Correlation Coefficient

Manaksia Coated  Apollo Hospitals

Good diversification

The 3 months correlation between Manaksia and Apollo is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Manaksia Coated Metals 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 Manaksia Coated 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 Manaksia Coated Metals 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 Manaksia Coated i.e., Manaksia Coated and Apollo Hospitals go up and down completely randomly.

Pair Corralation between Manaksia Coated and Apollo Hospitals

Assuming the 90 days trading horizon Manaksia Coated Metals is expected to generate 2.46 times more return on investment than Apollo Hospitals. However, Manaksia Coated is 2.46 times more volatile than Apollo Hospitals Enterprise. It trades about 0.11 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  1,811  in Manaksia Coated Metals on September 5, 2024 and sell it today you would earn a total of  6,375  from holding Manaksia Coated Metals or generate 352.02% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Manaksia Coated Metals  vs.  Apollo Hospitals Enterprise

Manaksia Coated Metals

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Manaksia Coated Metals are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of very weak basic indicators, Manaksia Coated displayed solid returns over the last few months and may actually be approaching a breakup point.

Apollo Hospitals Ent

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Apollo Hospitals Enterprise are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong basic indicators, Apollo Hospitals is not utilizing all of its potentials. The newest stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Manaksia Coated and Apollo Hospitals

The main advantage of trading using opposite Manaksia Coated and Apollo Hospitals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Manaksia Coated 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.

The idea behind Manaksia Coated Metals and Apollo Hospitals Enterprise pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.