Correlation Between SBI Life and Life Insurance
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By analyzing existing cross correlation between SBI Life Insurance and Life Insurance, you can compare the effects of market volatilities on SBI Life and Life Insurance 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 Life Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of SBI Life and Life Insurance.
Diversification Opportunities for SBI Life and Life Insurance
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between SBI and Life is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding SBI Life Insurance and Life Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Life Insurance 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 Life Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Life Insurance has no effect on the direction of SBI Life i.e., SBI Life and Life Insurance go up and down completely randomly.
Pair Corralation between SBI Life and Life Insurance
Assuming the 90 days trading horizon SBI Life Insurance is expected to under-perform the Life Insurance. In addition to that, SBI Life is 1.23 times more volatile than Life Insurance. It trades about -0.28 of its total potential returns per unit of risk. Life Insurance is currently generating about -0.06 per unit of volatility. If you would invest 90,365 in Life Insurance on August 26, 2024 and sell it today you would lose (1,415) from holding Life Insurance or give up 1.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.24% |
| Values | Daily Returns |
SBI Life Insurance vs. Life Insurance
Performance |
| Timeline |
| SBI Life Insurance |
| Life Insurance |
SBI Life and Life Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SBI Life and Life Insurance
The main advantage of trading using opposite SBI Life and Life Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SBI Life position performs unexpectedly, Life Insurance 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 Life Insurance will offset losses from the drop in Life Insurance's long position.| SBI Life vs. Gangotri Textiles Limited | SBI Life vs. Hemisphere Properties India | SBI Life vs. Kingfa Science Technology | SBI Life vs. Rico Auto Industries |
| Life Insurance vs. Gangotri Textiles Limited | Life Insurance vs. Hemisphere Properties India | Life Insurance vs. Kingfa Science Technology | Life Insurance vs. Rico Auto Industries |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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