Correlation Between Apollo Sindoori and JNK India

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Can any of the company-specific risk be diversified away by investing in both Apollo Sindoori and JNK India 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 Apollo Sindoori and JNK India into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apollo Sindoori Hotels and JNK India, you can compare the effects of market volatilities on Apollo Sindoori and JNK India 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 Apollo Sindoori with a short position of JNK India. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apollo Sindoori and JNK India.

Diversification Opportunities for Apollo Sindoori and JNK India

0.65
  Correlation Coefficient

Poor diversification

The 3 months correlation between Apollo and JNK is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Apollo Sindoori Hotels and JNK India in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JNK India and Apollo Sindoori 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 Apollo Sindoori Hotels are associated (or correlated) with JNK India. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JNK India has no effect on the direction of Apollo Sindoori i.e., Apollo Sindoori and JNK India go up and down completely randomly.

Pair Corralation between Apollo Sindoori and JNK India

Assuming the 90 days trading horizon Apollo Sindoori Hotels is expected to generate 0.57 times more return on investment than JNK India. However, Apollo Sindoori Hotels is 1.75 times less risky than JNK India. It trades about -0.1 of its potential returns per unit of risk. JNK India is currently generating about -0.18 per unit of risk. If you would invest  136,825  in Apollo Sindoori Hotels on September 7, 2025 and sell it today you would lose (11,125) from holding Apollo Sindoori Hotels or give up 8.13% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Apollo Sindoori Hotels  vs.  JNK India

 Performance 
       Timeline  
Apollo Sindoori Hotels 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Apollo Sindoori Hotels has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unsteady performance, the Stock's technical indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.
JNK India 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days JNK India has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's fundamental indicators remain fairly strong which may send shares a bit higher in January 2026. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Apollo Sindoori and JNK India Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Apollo Sindoori and JNK India

The main advantage of trading using opposite Apollo Sindoori and JNK India positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apollo Sindoori position performs unexpectedly, JNK India 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 JNK India will offset losses from the drop in JNK India's long position.
The idea behind Apollo Sindoori Hotels and JNK India 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..

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