Correlation Between SBI Life and S P
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By analyzing existing cross correlation between SBI Life Insurance and S P Apparels, you can compare the effects of market volatilities on SBI Life and S P 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 S P. Check out your portfolio center. Please also check ongoing floating volatility patterns of SBI Life and S P.
Diversification Opportunities for SBI Life and S P
Very good diversification
The 3 months correlation between SBI and SPAL is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding SBI Life Insurance and S P Apparels in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on S P Apparels 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 S P. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of S P Apparels has no effect on the direction of SBI Life i.e., SBI Life and S P go up and down completely randomly.
Pair Corralation between SBI Life and S P
Assuming the 90 days trading horizon SBI Life Insurance is expected to generate 0.64 times more return on investment than S P. However, SBI Life Insurance is 1.57 times less risky than S P. It trades about 0.14 of its potential returns per unit of risk. S P Apparels is currently generating about -0.13 per unit of risk. If you would invest 138,700 in SBI Life Insurance on October 26, 2024 and sell it today you would earn a total of 6,285 from holding SBI Life Insurance or generate 4.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
SBI Life Insurance vs. S P Apparels
Performance |
| Timeline |
| SBI Life Insurance |
| S P Apparels |
SBI Life and S P Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SBI Life and S P
The main advantage of trading using opposite SBI Life and S P positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SBI Life position performs unexpectedly, S P 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 S P will offset losses from the drop in S P's long position.| SBI Life vs. Spencers Retail Limited | SBI Life vs. Cartrade Tech Limited | SBI Life vs. Hexa Tradex Limited | SBI Life vs. Sintex Plastics Technology |
| S P vs. Kingfa Science Technology | S P vs. Rico Auto Industries | S P vs. COSMO FIRST LIMITED | S P vs. Tribhovandas Bhimji Zaveri |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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