Correlation Between Yes Bank and SBI Life
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By analyzing existing cross correlation between Yes Bank Limited and SBI Life Insurance, you can compare the effects of market volatilities on Yes Bank and SBI Life 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 Yes Bank with a short position of SBI Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yes Bank and SBI Life.
Diversification Opportunities for Yes Bank and SBI Life
Very good diversification
The 3 months correlation between Yes and SBI is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Yes Bank Limited and SBI Life Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SBI Life Insurance and Yes Bank 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 Yes Bank Limited are associated (or correlated) with SBI Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SBI Life Insurance has no effect on the direction of Yes Bank i.e., Yes Bank and SBI Life go up and down completely randomly.
Pair Corralation between Yes Bank and SBI Life
Assuming the 90 days trading horizon Yes Bank Limited is expected to under-perform the SBI Life. In addition to that, Yes Bank is 1.41 times more volatile than SBI Life Insurance. It trades about -0.34 of its total potential returns per unit of risk. SBI Life Insurance is currently generating about -0.12 per unit of volatility. If you would invest 146,232 in SBI Life Insurance on December 8, 2024 and sell it today you would lose (5,072) from holding SBI Life Insurance or give up 3.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yes Bank Limited vs. SBI Life Insurance
Performance |
| Timeline |
| Yes Bank Limited |
| SBI Life Insurance |
Yes Bank and SBI Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yes Bank and SBI Life
The main advantage of trading using opposite Yes Bank and SBI Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yes Bank position performs unexpectedly, SBI Life 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 SBI Life will offset losses from the drop in SBI Life's long position.| Yes Bank vs. Clean Science and | ||
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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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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