Correlation Between SBI Life and Bodhi Tree
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By analyzing existing cross correlation between SBI Life Insurance and Bodhi Tree Multimedia, you can compare the effects of market volatilities on SBI Life and Bodhi Tree 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 Bodhi Tree. Check out your portfolio center. Please also check ongoing floating volatility patterns of SBI Life and Bodhi Tree.
Diversification Opportunities for SBI Life and Bodhi Tree
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SBI and Bodhi is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding SBI Life Insurance and Bodhi Tree Multimedia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bodhi Tree Multimedia 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 Bodhi Tree. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bodhi Tree Multimedia has no effect on the direction of SBI Life i.e., SBI Life and Bodhi Tree go up and down completely randomly.
Pair Corralation between SBI Life and Bodhi Tree
Assuming the 90 days trading horizon SBI Life is expected to generate 138.79 times less return on investment than Bodhi Tree. But when comparing it to its historical volatility, SBI Life Insurance is 50.59 times less risky than Bodhi Tree. It trades about 0.03 of its potential returns per unit of risk. Bodhi Tree Multimedia is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 838.00 in Bodhi Tree Multimedia on September 2, 2024 and sell it today you would earn a total of 377.00 from holding Bodhi Tree Multimedia or generate 44.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
SBI Life Insurance vs. Bodhi Tree Multimedia
Performance |
| Timeline |
| SBI Life Insurance |
| Bodhi Tree Multimedia |
SBI Life and Bodhi Tree Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SBI Life and Bodhi Tree
The main advantage of trading using opposite SBI Life and Bodhi Tree positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SBI Life position performs unexpectedly, Bodhi Tree 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 Bodhi Tree will offset losses from the drop in Bodhi Tree's long position.| SBI Life vs. UFO Moviez India | SBI Life vs. Industrial Investment Trust | SBI Life vs. Music Broadcast Limited | SBI Life vs. BF Investment Limited |
| Bodhi Tree vs. Cantabil Retail India | Bodhi Tree vs. Jaypee Infratech Limited | Bodhi Tree vs. Styrenix Performance Materials | Bodhi Tree vs. Future Retail 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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