Correlation Between Life Insurance and SIL Investments
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By analyzing existing cross correlation between Life Insurance and SIL Investments Limited, you can compare the effects of market volatilities on Life Insurance and SIL Investments 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 SIL Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of Life Insurance and SIL Investments.
Diversification Opportunities for Life Insurance and SIL Investments
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Life and SIL is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Life Insurance and SIL Investments Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SIL Investments 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 SIL Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SIL Investments has no effect on the direction of Life Insurance i.e., Life Insurance and SIL Investments go up and down completely randomly.
Pair Corralation between Life Insurance and SIL Investments
Assuming the 90 days trading horizon Life Insurance is expected to generate 2.0 times less return on investment than SIL Investments. But when comparing it to its historical volatility, Life Insurance is 1.46 times less risky than SIL Investments. It trades about 0.04 of its potential returns per unit of risk. SIL Investments Limited is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 31,456 in SIL Investments Limited on October 25, 2024 and sell it today you would earn a total of 29,824 from holding SIL Investments Limited or generate 94.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.39% |
| Values | Daily Returns |
Life Insurance vs. SIL Investments Limited
Performance |
| Timeline |
| Life Insurance |
| SIL Investments |
Life Insurance and SIL Investments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Life Insurance and SIL Investments
The main advantage of trading using opposite Life Insurance and SIL Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Life Insurance position performs unexpectedly, SIL Investments 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 SIL Investments will offset losses from the drop in SIL Investments' long position.| Life Insurance vs. State Bank of | Life Insurance vs. HDFC Bank Limited | Life Insurance vs. ICICI Bank Limited | Life Insurance vs. Reliance Industries Limited |
| SIL Investments vs. State Bank of | SIL Investments vs. Life Insurance | SIL Investments vs. HDFC Bank Limited | SIL Investments 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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