Correlation Between SBI Insurance and Anfield Energy
Can any of the company-specific risk be diversified away by investing in both SBI Insurance and Anfield Energy 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 SBI Insurance and Anfield Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SBI Insurance Group and Anfield Energy, you can compare the effects of market volatilities on SBI Insurance and Anfield Energy 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 SBI Insurance with a short position of Anfield Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of SBI Insurance and Anfield Energy.
Diversification Opportunities for SBI Insurance and Anfield Energy
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SBI and Anfield is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SBI Insurance Group and Anfield Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anfield Energy and SBI Insurance 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 SBI Insurance Group are associated (or correlated) with Anfield Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anfield Energy has no effect on the direction of SBI Insurance i.e., SBI Insurance and Anfield Energy go up and down completely randomly.
Pair Corralation between SBI Insurance and Anfield Energy
If you would invest 595.00 in SBI Insurance Group on September 3, 2024 and sell it today you would earn a total of 30.00 from holding SBI Insurance Group or generate 5.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.22% |
| Values | Daily Returns |
SBI Insurance Group vs. Anfield Energy
Performance |
| Timeline |
| SBI Insurance Group |
| Anfield Energy |
SBI Insurance and Anfield Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SBI Insurance and Anfield Energy
The main advantage of trading using opposite SBI Insurance and Anfield Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SBI Insurance position performs unexpectedly, Anfield Energy 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 Anfield Energy will offset losses from the drop in Anfield Energy's long position.| SBI Insurance vs. Richardson Electronics | SBI Insurance vs. Methode Electronics | SBI Insurance vs. HOCHSCHILD MINING | SBI Insurance vs. Benchmark Electronics |
| Anfield Energy vs. Apple Inc | Anfield Energy vs. Apple Inc | Anfield Energy vs. Apple Inc | Anfield Energy vs. Apple Inc |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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