Correlation Between Life Insurance and N B
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By analyzing existing cross correlation between Life Insurance and N B I, you can compare the effects of market volatilities on Life Insurance and N B 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 N B. Check out your portfolio center. Please also check ongoing floating volatility patterns of Life Insurance and N B.
Diversification Opportunities for Life Insurance and N B
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Life and NBIFIN is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Life Insurance and N B I in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on N B I 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 N B. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of N B I has no effect on the direction of Life Insurance i.e., Life Insurance and N B go up and down completely randomly.
Pair Corralation between Life Insurance and N B
Assuming the 90 days trading horizon Life Insurance is expected to under-perform the N B. But the stock apears to be less risky and, when comparing its historical volatility, Life Insurance is 1.75 times less risky than N B. The stock trades about -0.21 of its potential returns per unit of risk. The N B I is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 238,465 in N B I on August 28, 2024 and sell it today you would earn a total of 32,130 from holding N B I or generate 13.47% 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. N B I
Performance |
| Timeline |
| Life Insurance |
| N B I |
Life Insurance and N B Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Life Insurance and N B
The main advantage of trading using opposite Life Insurance and N B positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Life Insurance position performs unexpectedly, N B 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 N B will offset losses from the drop in N B's long position.| Life Insurance vs. Gangotri Textiles Limited | Life Insurance vs. Hemisphere Properties India | Life Insurance vs. Kingfa Science Technology | Life Insurance vs. Rico Auto Industries |
| N B vs. FCS Software Solutions | N B vs. Tips Music Limited | N B vs. Cybertech Systems And | N B vs. TECIL Chemicals and |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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