Correlation Between Life Insurance and Saksoft
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By analyzing existing cross correlation between Life Insurance and Saksoft Limited, you can compare the effects of market volatilities on Life Insurance and Saksoft 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 Life Insurance with a short position of Saksoft. Check out your portfolio center. Please also check ongoing floating volatility patterns of Life Insurance and Saksoft.
Diversification Opportunities for Life Insurance and Saksoft
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Life and Saksoft is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Life Insurance and Saksoft Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saksoft Limited and Life Insurance 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 Life Insurance are associated (or correlated) with Saksoft. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saksoft Limited has no effect on the direction of Life Insurance i.e., Life Insurance and Saksoft go up and down completely randomly.
Pair Corralation between Life Insurance and Saksoft
Assuming the 90 days trading horizon Life Insurance is expected to generate 0.8 times more return on investment than Saksoft. However, Life Insurance is 1.24 times less risky than Saksoft. It trades about 0.03 of its potential returns per unit of risk. Saksoft Limited is currently generating about -0.01 per unit of risk. If you would invest 82,997 in Life Insurance on September 25, 2024 and sell it today you would earn a total of 7,483 from holding Life Insurance or generate 9.02% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 98.77% |
Values | Daily Returns |
Life Insurance vs. Saksoft Limited
Performance |
Timeline |
Life Insurance |
Saksoft Limited |
Life Insurance and Saksoft Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Life Insurance and Saksoft
The main advantage of trading using opposite Life Insurance and Saksoft positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Life Insurance position performs unexpectedly, Saksoft 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 Saksoft will offset losses from the drop in Saksoft's long position.Life Insurance vs. Reliance Industries Limited | Life Insurance vs. Oil Natural Gas | Life Insurance vs. ICICI Bank Limited | Life Insurance vs. Bharti Airtel Limited |
Saksoft vs. State Bank of | Saksoft vs. Life Insurance | Saksoft vs. HDFC Bank Limited | Saksoft vs. ICICI Bank 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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