Correlation Between RBL Bank and General Insurance
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By analyzing existing cross correlation between RBL Bank Limited and General Insurance, you can compare the effects of market volatilities on RBL Bank and General Insurance 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 RBL Bank with a short position of General Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of RBL Bank and General Insurance.
Diversification Opportunities for RBL Bank and General Insurance
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between RBL and General is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding RBL Bank Limited and General Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on General Insurance and RBL Bank 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 RBL Bank Limited are associated (or correlated) with General Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of General Insurance has no effect on the direction of RBL Bank i.e., RBL Bank and General Insurance go up and down completely randomly.
Pair Corralation between RBL Bank and General Insurance
Assuming the 90 days trading horizon RBL Bank is expected to generate 12.13 times less return on investment than General Insurance. But when comparing it to its historical volatility, RBL Bank Limited is 1.24 times less risky than General Insurance. It trades about 0.01 of its potential returns per unit of risk. General Insurance is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 14,958 in General Insurance on November 1, 2024 and sell it today you would earn a total of 25,537 from holding General Insurance or generate 170.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
RBL Bank Limited vs. General Insurance
Performance |
| Timeline |
| RBL Bank Limited |
| General Insurance |
RBL Bank and General Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with RBL Bank and General Insurance
The main advantage of trading using opposite RBL Bank and General Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RBL Bank position performs unexpectedly, General Insurance 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 General Insurance will offset losses from the drop in General Insurance's long position.| RBL Bank vs. Embassy Office Parks | RBL Bank vs. Hi Tech Pipes Limited | RBL Bank vs. Total Transport Systems | RBL Bank vs. Garware Hi Tech Films |
| General Insurance vs. Kewal Kiran Clothing | General Insurance vs. NRB Industrial Bearings | General Insurance vs. Ratnamani Metals Tubes | General Insurance vs. AUTHUM INVESTMENT INFRASTRUCTU |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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