Correlation Between Actinogen Medical and Qbe Insurance
Can any of the company-specific risk be diversified away by investing in both Actinogen Medical and Qbe Insurance at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Actinogen Medical and Qbe Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Actinogen Medical and Qbe Insurance Group, you can compare the effects of market volatilities on Actinogen Medical and Qbe 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 Actinogen Medical with a short position of Qbe Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Actinogen Medical and Qbe Insurance.
Diversification Opportunities for Actinogen Medical and Qbe Insurance
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Actinogen and Qbe is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Actinogen Medical and Qbe Insurance Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qbe Insurance Group and Actinogen Medical 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 Actinogen Medical are associated (or correlated) with Qbe Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qbe Insurance Group has no effect on the direction of Actinogen Medical i.e., Actinogen Medical and Qbe Insurance go up and down completely randomly.
Pair Corralation between Actinogen Medical and Qbe Insurance
Assuming the 90 days trading horizon Actinogen Medical is expected to generate 4.4 times more return on investment than Qbe Insurance. However, Actinogen Medical is 4.4 times more volatile than Qbe Insurance Group. It trades about 0.11 of its potential returns per unit of risk. Qbe Insurance Group is currently generating about 0.21 per unit of risk. If you would invest 2.50 in Actinogen Medical on December 21, 2024 and sell it today you would earn a total of 0.80 from holding Actinogen Medical or generate 32.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Actinogen Medical vs. Qbe Insurance Group
Performance |
Timeline |
Actinogen Medical |
Qbe Insurance Group |
Actinogen Medical and Qbe Insurance Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Actinogen Medical and Qbe Insurance
The main advantage of trading using opposite Actinogen Medical and Qbe Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Actinogen Medical position performs unexpectedly, Qbe 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 Qbe Insurance will offset losses from the drop in Qbe Insurance's long position.Actinogen Medical vs. Sun Silver Limited | Actinogen Medical vs. Stelar Metals | Actinogen Medical vs. Aeon Metals | Actinogen Medical vs. MetalsGrove Mining |
Qbe Insurance vs. Microequities Asset Management | Qbe Insurance vs. Cleanaway Waste Management | Qbe Insurance vs. Garda Diversified Ppty | Qbe Insurance vs. Regal Funds Management |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
Money Managers Screen money managers from public funds and ETFs managed around the world | |
Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
CEOs Directory Screen CEOs from public companies around the world | |
Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |