Correlation Between SBI Life and ADF Foods
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By analyzing existing cross correlation between SBI Life Insurance and ADF Foods Limited, you can compare the effects of market volatilities on SBI Life and ADF Foods 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 SBI Life with a short position of ADF Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of SBI Life and ADF Foods.
Diversification Opportunities for SBI Life and ADF Foods
Very good diversification
The 3 months correlation between SBI and ADF is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding SBI Life Insurance and ADF Foods Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ADF Foods Limited and SBI Life 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 SBI Life Insurance are associated (or correlated) with ADF Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ADF Foods Limited has no effect on the direction of SBI Life i.e., SBI Life and ADF Foods go up and down completely randomly.
Pair Corralation between SBI Life and ADF Foods
Assuming the 90 days trading horizon SBI Life Insurance is expected to generate 0.41 times more return on investment than ADF Foods. However, SBI Life Insurance is 2.42 times less risky than ADF Foods. It trades about 0.14 of its potential returns per unit of risk. ADF Foods Limited is currently generating about -0.46 per unit of risk. If you would invest 142,165 in SBI Life Insurance on October 16, 2024 and sell it today you would earn a total of 4,575 from holding SBI Life Insurance or generate 3.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
SBI Life Insurance vs. ADF Foods Limited
Performance |
| Timeline |
| SBI Life Insurance |
| ADF Foods Limited |
SBI Life and ADF Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SBI Life and ADF Foods
The main advantage of trading using opposite SBI Life and ADF Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SBI Life position performs unexpectedly, ADF Foods 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 ADF Foods will offset losses from the drop in ADF Foods' long position.| SBI Life vs. Sudarshan Chemical Industries | SBI Life vs. Newgen Software Technologies | SBI Life vs. Compucom Software Limited | SBI Life vs. Punjab Chemicals Crop |
| ADF Foods vs. Kingfa Science Technology | ADF Foods vs. R S Software | ADF Foods vs. FCS Software Solutions | ADF Foods vs. Compucom Software 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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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