Correlation Between Aban Offshore and SBI Life
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By analyzing existing cross correlation between Aban Offshore Limited and SBI Life Insurance, you can compare the effects of market volatilities on Aban Offshore and SBI Life 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 Aban Offshore with a short position of SBI Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aban Offshore and SBI Life.
Diversification Opportunities for Aban Offshore and SBI Life
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Aban and SBI is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Aban Offshore Limited and SBI Life Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SBI Life Insurance and Aban Offshore 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 Aban Offshore Limited are associated (or correlated) with SBI Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SBI Life Insurance has no effect on the direction of Aban Offshore i.e., Aban Offshore and SBI Life go up and down completely randomly.
Pair Corralation between Aban Offshore and SBI Life
Assuming the 90 days trading horizon Aban Offshore Limited is expected to under-perform the SBI Life. In addition to that, Aban Offshore is 1.88 times more volatile than SBI Life Insurance. It trades about -0.36 of its total potential returns per unit of risk. SBI Life Insurance is currently generating about 0.13 per unit of volatility. If you would invest 142,165 in SBI Life Insurance on October 17, 2024 and sell it today you would earn a total of 5,110 from holding SBI Life Insurance or generate 3.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Aban Offshore Limited vs. SBI Life Insurance
Performance |
| Timeline |
| Aban Offshore Limited |
| SBI Life Insurance |
Aban Offshore and SBI Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aban Offshore and SBI Life
The main advantage of trading using opposite Aban Offshore and SBI Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aban Offshore position performs unexpectedly, SBI Life 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 SBI Life will offset losses from the drop in SBI Life's long position.| Aban Offshore vs. The Hi Tech Gears | Aban Offshore vs. MIRC Electronics Limited | Aban Offshore vs. Shyam Metalics and | Aban Offshore vs. Paramount Communications Limited |
| SBI Life vs. Manaksia Coated Metals | SBI Life vs. Ratnamani Metals Tubes | SBI Life vs. Zota Health Care | SBI Life vs. Aban Offshore 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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