Correlation Between SINCLAIRS HOTELS and Apollo Sindoori

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

By analyzing existing cross correlation between SINCLAIRS HOTELS ORD and Apollo Sindoori Hotels, you can compare the effects of market volatilities on SINCLAIRS HOTELS and Apollo Sindoori 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 SINCLAIRS HOTELS with a short position of Apollo Sindoori. Check out your portfolio center. Please also check ongoing floating volatility patterns of SINCLAIRS HOTELS and Apollo Sindoori.

Diversification Opportunities for SINCLAIRS HOTELS and Apollo Sindoori

0.63

Correlation Coefficient

SINCLAIRS HOTELS  Apollo Sindoori

Poor diversification

The 3 months correlation between SINCLAIRS and Apollo is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding SINCLAIRS HOTELS ORD and Apollo Sindoori Hotels in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apollo Sindoori Hotels and SINCLAIRS HOTELS 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 SINCLAIRS HOTELS ORD are associated (or correlated) with Apollo Sindoori. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apollo Sindoori Hotels has no effect on the direction of SINCLAIRS HOTELS i.e., SINCLAIRS HOTELS and Apollo Sindoori go up and down completely randomly.

Pair Corralation between SINCLAIRS HOTELS and Apollo Sindoori

Assuming the 90 days trading horizon SINCLAIRS HOTELS ORD is expected to generate 1.13 times more return on investment than Apollo Sindoori. However, SINCLAIRS HOTELS is 1.13 times more volatile than Apollo Sindoori Hotels. It trades about 0.05 of its potential returns per unit of risk. Apollo Sindoori Hotels is currently generating about 0.06 per unit of risk. If you would invest  9,902  in SINCLAIRS HOTELS ORD on April 24, 2025 and sell it today you would earn a total of  771.00  from holding SINCLAIRS HOTELS ORD or generate 7.79% return on investment over 90 days.

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

SINCLAIRS HOTELS ORD  vs.  Apollo Sindoori Hotels

SINCLAIRS HOTELS ORD

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in SINCLAIRS HOTELS ORD are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite fairly uncertain basic indicators, SINCLAIRS HOTELS may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Apollo Sindoori Hotels

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Apollo Sindoori Hotels are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating technical indicators, Apollo Sindoori may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with SINCLAIRS HOTELS and Apollo Sindoori

The main advantage of trading using opposite SINCLAIRS HOTELS and Apollo Sindoori positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SINCLAIRS HOTELS position performs unexpectedly, Apollo Sindoori 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 Sindoori will offset losses from the drop in Apollo Sindoori's long position.

The idea behind SINCLAIRS HOTELS ORD and Apollo Sindoori Hotels 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.

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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.