Correlation Between SBI Life and State Bank
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By analyzing existing cross correlation between SBI Life Insurance and State Bank of, you can compare the effects of market volatilities on SBI Life and State Bank 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 State Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of SBI Life and State Bank.
Diversification Opportunities for SBI Life and State Bank
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between SBI and State is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding SBI Life Insurance and State Bank of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on State Bank 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 State Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of State Bank has no effect on the direction of SBI Life i.e., SBI Life and State Bank go up and down completely randomly.
Pair Corralation between SBI Life and State Bank
Assuming the 90 days trading horizon SBI Life Insurance is expected to generate 1.2 times more return on investment than State Bank. However, SBI Life is 1.2 times more volatile than State Bank of. It trades about 0.11 of its potential returns per unit of risk. State Bank of is currently generating about -0.01 per unit of risk. If you would invest 143,465 in SBI Life Insurance on November 7, 2024 and sell it today you would earn a total of 4,895 from holding SBI Life Insurance or generate 3.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SBI Life Insurance vs. State Bank of
Performance |
| Timeline |
| SBI Life Insurance |
| State Bank |
SBI Life and State Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SBI Life and State Bank
The main advantage of trading using opposite SBI Life and State Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SBI Life position performs unexpectedly, State Bank 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 State Bank will offset losses from the drop in State Bank's long position.| SBI Life vs. KNR Constructions Limited | SBI Life vs. Sportking India Limited | SBI Life vs. Teamlease Services Limited | SBI Life vs. Sarthak Metals Limited |
| State Bank vs. AUTHUM INVESTMENT INFRASTRUCTU | State Bank vs. SIL Investments Limited | State Bank vs. Tube Investments of | State Bank vs. Bombay Burmah Trading |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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