Correlation Between SBI Life and Industrial Investment
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By analyzing existing cross correlation between SBI Life Insurance and Industrial Investment Trust, you can compare the effects of market volatilities on SBI Life and Industrial Investment 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 Industrial Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of SBI Life and Industrial Investment.
Diversification Opportunities for SBI Life and Industrial Investment
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SBI and Industrial is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding SBI Life Insurance and Industrial Investment Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Industrial Investment 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 Industrial Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Industrial Investment has no effect on the direction of SBI Life i.e., SBI Life and Industrial Investment go up and down completely randomly.
Pair Corralation between SBI Life and Industrial Investment
Assuming the 90 days trading horizon SBI Life Insurance is expected to generate 0.45 times more return on investment than Industrial Investment. However, SBI Life Insurance is 2.24 times less risky than Industrial Investment. It trades about 0.01 of its potential returns per unit of risk. Industrial Investment Trust is currently generating about -0.57 per unit of risk. If you would invest 146,185 in SBI Life Insurance on October 11, 2024 and sell it today you would earn a total of 130.00 from holding SBI Life Insurance or generate 0.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
SBI Life Insurance vs. Industrial Investment Trust
Performance |
| Timeline |
| SBI Life Insurance |
| Industrial Investment |
SBI Life and Industrial Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SBI Life and Industrial Investment
The main advantage of trading using opposite SBI Life and Industrial Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SBI Life position performs unexpectedly, Industrial Investment 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 Industrial Investment will offset losses from the drop in Industrial Investment's long position.| SBI Life vs. NRB Industrial Bearings | SBI Life vs. 21st Century Management | SBI Life vs. ZF Commercial Vehicle | SBI Life vs. Popular Vehicles and |
| Industrial Investment vs. Salzer Electronics Limited | Industrial Investment vs. Royal Orchid Hotels | Industrial Investment vs. Popular Vehicles and | Industrial Investment vs. TVS Electronics 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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