Correlation Between Life Insurance and Aster DM
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By analyzing existing cross correlation between Life Insurance and Aster DM Healthcare, you can compare the effects of market volatilities on Life Insurance and Aster DM 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 Life Insurance with a short position of Aster DM. Check out your portfolio center. Please also check ongoing floating volatility patterns of Life Insurance and Aster DM.
Diversification Opportunities for Life Insurance and Aster DM
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Life and Aster is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Life Insurance and Aster DM Healthcare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aster DM Healthcare and Life 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 Life Insurance are associated (or correlated) with Aster DM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aster DM Healthcare has no effect on the direction of Life Insurance i.e., Life Insurance and Aster DM go up and down completely randomly.
Pair Corralation between Life Insurance and Aster DM
Assuming the 90 days trading horizon Life Insurance is expected to under-perform the Aster DM. In addition to that, Life Insurance is 1.03 times more volatile than Aster DM Healthcare. It trades about -0.02 of its total potential returns per unit of risk. Aster DM Healthcare is currently generating about 0.08 per unit of volatility. If you would invest 32,580 in Aster DM Healthcare on November 1, 2024 and sell it today you would earn a total of 15,145 from holding Aster DM Healthcare or generate 46.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Life Insurance vs. Aster DM Healthcare
Performance |
| Timeline |
| Life Insurance |
| Aster DM Healthcare |
Life Insurance and Aster DM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Life Insurance and Aster DM
The main advantage of trading using opposite Life Insurance and Aster DM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Life Insurance position performs unexpectedly, Aster DM 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 Aster DM will offset losses from the drop in Aster DM's long position.| Life Insurance vs. Vardhman Special Steels | Life Insurance vs. NMDC Steel Limited | Life Insurance vs. SAL Steel Limited | Life Insurance vs. Kotak Mahindra Bank |
| Aster DM vs. Life Insurance | Aster DM vs. Power Finance | Aster DM vs. HDFC Bank Limited | Aster DM vs. State Bank of |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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