Correlation Between SBI Life and ASK AUTOMOTIVE
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By analyzing existing cross correlation between SBI Life Insurance and ASK AUTOMOTIVE LIMITED, you can compare the effects of market volatilities on SBI Life and ASK AUTOMOTIVE 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 ASK AUTOMOTIVE. Check out your portfolio center. Please also check ongoing floating volatility patterns of SBI Life and ASK AUTOMOTIVE.
Diversification Opportunities for SBI Life and ASK AUTOMOTIVE
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between SBI and ASK is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding SBI Life Insurance and ASK AUTOMOTIVE LIMITED in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASK AUTOMOTIVE 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 ASK AUTOMOTIVE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ASK AUTOMOTIVE has no effect on the direction of SBI Life i.e., SBI Life and ASK AUTOMOTIVE go up and down completely randomly.
Pair Corralation between SBI Life and ASK AUTOMOTIVE
Assuming the 90 days trading horizon SBI Life is expected to generate 10.46 times less return on investment than ASK AUTOMOTIVE. But when comparing it to its historical volatility, SBI Life Insurance is 1.49 times less risky than ASK AUTOMOTIVE. It trades about 0.02 of its potential returns per unit of risk. ASK AUTOMOTIVE LIMITED is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 30,898 in ASK AUTOMOTIVE LIMITED on September 3, 2024 and sell it today you would earn a total of 14,027 from holding ASK AUTOMOTIVE LIMITED or generate 45.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.19% |
| Values | Daily Returns |
SBI Life Insurance vs. ASK AUTOMOTIVE LIMITED
Performance |
| Timeline |
| SBI Life Insurance |
| ASK AUTOMOTIVE |
SBI Life and ASK AUTOMOTIVE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SBI Life and ASK AUTOMOTIVE
The main advantage of trading using opposite SBI Life and ASK AUTOMOTIVE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SBI Life position performs unexpectedly, ASK AUTOMOTIVE 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 ASK AUTOMOTIVE will offset losses from the drop in ASK AUTOMOTIVE's long position.| SBI Life vs. Reliance Industries Limited | SBI Life vs. Shipping | SBI Life vs. Indo Borax Chemicals | SBI Life vs. Kingfa Science Technology |
| ASK AUTOMOTIVE vs. Hindware Home Innovation | ASK AUTOMOTIVE vs. Vraj Iron and | ASK AUTOMOTIVE vs. Sunflag Iron And | ASK AUTOMOTIVE vs. Vardhman Special Steels |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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