Correlation Between Agro Tech and SBI Life
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By analyzing existing cross correlation between Agro Tech Foods and SBI Life Insurance, you can compare the effects of market volatilities on Agro Tech 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 Agro Tech with a short position of SBI Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agro Tech and SBI Life.
Diversification Opportunities for Agro Tech and SBI Life
Excellent diversification
The 3 months correlation between Agro and SBI is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Agro Tech Foods 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 Agro Tech 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 Agro Tech Foods 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 Agro Tech i.e., Agro Tech and SBI Life go up and down completely randomly.
Pair Corralation between Agro Tech and SBI Life
Assuming the 90 days trading horizon Agro Tech Foods is expected to generate 2.09 times more return on investment than SBI Life. However, Agro Tech is 2.09 times more volatile than SBI Life Insurance. It trades about 0.07 of its potential returns per unit of risk. SBI Life Insurance is currently generating about -0.27 per unit of risk. If you would invest 83,480 in Agro Tech Foods on September 2, 2024 and sell it today you would earn a total of 10,335 from holding Agro Tech Foods or generate 12.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 98.44% |
| Values | Daily Returns |
Agro Tech Foods vs. SBI Life Insurance
Performance |
| Timeline |
| Agro Tech Foods |
| SBI Life Insurance |
Agro Tech and SBI Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agro Tech and SBI Life
The main advantage of trading using opposite Agro Tech and SBI Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agro Tech 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.| Agro Tech vs. Steelcast Limited | Agro Tech vs. NMDC Steel Limited | Agro Tech vs. HDFC Life Insurance | Agro Tech vs. MSP Steel Power |
| SBI Life vs. UFO Moviez India | SBI Life vs. Industrial Investment Trust | SBI Life vs. Music Broadcast Limited | SBI Life vs. BF Investment 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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