Correlation Between Life Insurance and BAG Films
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By analyzing existing cross correlation between Life Insurance and BAG Films and, you can compare the effects of market volatilities on Life Insurance and BAG Films 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 BAG Films. Check out your portfolio center. Please also check ongoing floating volatility patterns of Life Insurance and BAG Films.
Diversification Opportunities for Life Insurance and BAG Films
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Life and BAG is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Life Insurance and BAG Films and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BAG Films 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 BAG Films. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BAG Films has no effect on the direction of Life Insurance i.e., Life Insurance and BAG Films go up and down completely randomly.
Pair Corralation between Life Insurance and BAG Films
Assuming the 90 days trading horizon Life Insurance is expected to generate 0.49 times more return on investment than BAG Films. However, Life Insurance is 2.06 times less risky than BAG Films. It trades about -0.29 of its potential returns per unit of risk. BAG Films and is currently generating about -0.31 per unit of risk. If you would invest 92,390 in Life Insurance on October 17, 2024 and sell it today you would lose (8,785) from holding Life Insurance or give up 9.51% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Life Insurance vs. BAG Films and
Performance |
| Timeline |
| Life Insurance |
| BAG Films |
Life Insurance and BAG Films Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Life Insurance and BAG Films
The main advantage of trading using opposite Life Insurance and BAG Films positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Life Insurance position performs unexpectedly, BAG Films 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 BAG Films will offset losses from the drop in BAG Films' long position.| Life Insurance vs. Agro Tech Foods | Life Insurance vs. Jubilant Foodworks Limited | Life Insurance vs. Shyam Telecom Limited | Life Insurance vs. One 97 Communications |
| BAG Films vs. State Bank of | BAG Films vs. Life Insurance | BAG Films vs. HDFC Bank Limited | BAG Films vs. ICICI Bank 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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