Correlation Between Power Finance and SBI Life
Specify exactly 2 symbols:
By analyzing existing cross correlation between Power Finance and SBI Life Insurance, you can compare the effects of market volatilities on Power Finance and SBI Life 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 Power Finance with a short position of SBI Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Power Finance and SBI Life.
Diversification Opportunities for Power Finance and SBI Life
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Power and SBI is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Power Finance and SBI Life Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SBI Life Insurance and Power Finance 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 Power Finance are associated (or correlated) with SBI Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SBI Life Insurance has no effect on the direction of Power Finance i.e., Power Finance and SBI Life go up and down completely randomly.
Pair Corralation between Power Finance and SBI Life
Assuming the 90 days trading horizon Power Finance is expected to under-perform the SBI Life. In addition to that, Power Finance is 1.81 times more volatile than SBI Life Insurance. It trades about -0.07 of its total potential returns per unit of risk. SBI Life Insurance is currently generating about 0.11 per unit of volatility. If you would invest 143,465 in SBI Life Insurance on November 7, 2024 and sell it today you would earn a total of 4,895 from holding SBI Life Insurance or generate 3.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Power Finance vs. SBI Life Insurance
Performance |
| Timeline |
| Power Finance |
| SBI Life Insurance |
Power Finance and SBI Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Power Finance and SBI Life
The main advantage of trading using opposite Power Finance and SBI Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Power Finance position performs unexpectedly, SBI Life 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 SBI Life will offset losses from the drop in SBI Life's long position.| Power Finance vs. One 97 Communications | Power Finance vs. MSP Steel Power | Power Finance vs. Zenith Steel Pipes | Power Finance vs. Tamilnadu Telecommunication Limited |
| SBI Life vs. KNR Constructions Limited | SBI Life vs. Sportking India Limited | SBI Life vs. Teamlease Services Limited | SBI Life vs. Sarthak Metals 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |