Correlation Between Harvard Apparatus and QBE Insurance

Can any of the company-specific risk be diversified away by investing in both Harvard Apparatus 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 Harvard Apparatus and QBE Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Harvard Apparatus Regenerative and QBE Insurance Group, you can compare the effects of market volatilities on Harvard Apparatus 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 Harvard Apparatus with a short position of QBE Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harvard Apparatus and QBE Insurance.

Diversification Opportunities for Harvard Apparatus and QBE Insurance

-0.72

Correlation Coefficient

Harvard Apparatus  QBE Insurance

Pay attention - limited upside

The 3 months correlation between Harvard and QBE is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Harvard Apparatus Regenerative 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 Harvard Apparatus 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 Harvard Apparatus Regenerative 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 Harvard Apparatus i.e., Harvard Apparatus and QBE Insurance go up and down completely randomly.

Pair Corralation between Harvard Apparatus and QBE Insurance

If you would invest  1,120  in QBE Insurance Group on October 4, 2024 and sell it today you would earn a total of  70.00  from holding QBE Insurance Group or generate 6.25% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	1.61%
Values	Daily Returns

Harvard Apparatus Regenerative  vs.  QBE Insurance Group

Harvard Apparatus

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Harvard Apparatus Regenerative has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy technical and fundamental indicators, Harvard Apparatus is not utilizing all of its potentials. The newest stock price disarray, may contribute to short-term losses for the investors.

QBE Insurance Group

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in QBE Insurance Group are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak forward indicators, QBE Insurance may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Harvard Apparatus and QBE Insurance

The main advantage of trading using opposite Harvard Apparatus and QBE Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harvard Apparatus 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.

The idea behind Harvard Apparatus Regenerative and QBE Insurance Group pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.