Correlation Between SBI Life and General Insuranceof
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By analyzing existing cross correlation between SBI Life Insurance and General Insurance, you can compare the effects of market volatilities on SBI Life and General Insuranceof 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 General Insuranceof. Check out your portfolio center. Please also check ongoing floating volatility patterns of SBI Life and General Insuranceof.
Diversification Opportunities for SBI Life and General Insuranceof
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SBI and General is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding SBI Life Insurance and General Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on General Insuranceof 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 General Insuranceof. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of General Insuranceof has no effect on the direction of SBI Life i.e., SBI Life and General Insuranceof go up and down completely randomly.
Pair Corralation between SBI Life and General Insuranceof
Assuming the 90 days trading horizon SBI Life is expected to generate 3.12 times less return on investment than General Insuranceof. But when comparing it to its historical volatility, SBI Life Insurance is 1.53 times less risky than General Insuranceof. It trades about 0.02 of its potential returns per unit of risk. General Insurance is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 36,101 in General Insurance on August 30, 2024 and sell it today you would earn a total of 3,664 from holding General Insurance or generate 10.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.19% |
| Values | Daily Returns |
SBI Life Insurance vs. General Insurance
Performance |
| Timeline |
| SBI Life Insurance |
| General Insuranceof |
SBI Life and General Insuranceof Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SBI Life and General Insuranceof
The main advantage of trading using opposite SBI Life and General Insuranceof positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SBI Life position performs unexpectedly, General Insuranceof 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 Insuranceof will offset losses from the drop in General Insuranceof's long position.| SBI Life vs. Kohinoor Foods Limited | SBI Life vs. Sarveshwar Foods Limited | SBI Life vs. Sportking India Limited | SBI Life vs. LT Foods Limited |
| General Insuranceof vs. The Orissa Minerals | General Insuranceof vs. DSJ Keep Learning | General Insuranceof vs. Malu Paper Mills | General Insuranceof vs. Kingfa Science Technology |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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