Correlation Between Abans Financial and Apollo Hospitals

Can any of the company-specific risk be diversified away by investing in both Abans Financial 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 Abans Financial and Apollo Hospitals into the same portfolio, which is an essential part of the fundamental portfolio management process.

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

Diversification Opportunities for Abans Financial and Apollo Hospitals

0.47

Correlation Coefficient

Abans Financial  Apollo Hospitals

Very weak diversification

The 3 months correlation between Abans and Apollo is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Abans Financial Services 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 Abans Financial 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 Abans Financial Services 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 Abans Financial i.e., Abans Financial and Apollo Hospitals go up and down completely randomly.

Pair Corralation between Abans Financial and Apollo Hospitals

Assuming the 90 days trading horizon Abans Financial Services is expected to generate 2.49 times more return on investment than Apollo Hospitals. However, Abans Financial is 2.49 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 0.03 per unit of risk. If you would invest  18,051  in Abans Financial Services on April 20, 2025 and sell it today you would earn a total of  3,627  from holding Abans Financial Services or generate 20.09% return on investment over 90 days.

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

Abans Financial Services  vs.  Apollo Hospitals Enterprise

Abans Financial Services

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Abans Financial Services are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively conflicting basic indicators, Abans Financial unveiled solid returns over the last few months and may actually be approaching a breakup point.

Apollo Hospitals Ent

Risk-Adjusted Performance

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 recent stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Abans Financial and Apollo Hospitals

The main advantage of trading using opposite Abans Financial and Apollo Hospitals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Abans Financial 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 Abans Financial Services 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.