Correlation Between Qbe Insurance and Australia
Can any of the company-specific risk be diversified away by investing in both Qbe Insurance and Australia 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 Qbe Insurance and Australia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Qbe Insurance Group and Australia and New, you can compare the effects of market volatilities on Qbe Insurance and Australia 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 Qbe Insurance with a short position of Australia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qbe Insurance and Australia.
Diversification Opportunities for Qbe Insurance and Australia
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Qbe and Australia is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Qbe Insurance Group and Australia and New in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Australia and New and Qbe 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 Qbe Insurance Group are associated (or correlated) with Australia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Australia and New has no effect on the direction of Qbe Insurance i.e., Qbe Insurance and Australia go up and down completely randomly.
Pair Corralation between Qbe Insurance and Australia
Assuming the 90 days trading horizon Qbe Insurance Group is expected to generate 1.01 times more return on investment than Australia. However, Qbe Insurance is 1.01 times more volatile than Australia and New. It trades about 0.24 of its potential returns per unit of risk. Australia and New is currently generating about 0.04 per unit of risk. If you would invest 1,882 in Qbe Insurance Group on December 29, 2024 and sell it today you would earn a total of 382.00 from holding Qbe Insurance Group or generate 20.3% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Qbe Insurance Group vs. Australia and New
Performance |
Timeline |
Qbe Insurance Group |
Australia and New |
Qbe Insurance and Australia Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Qbe Insurance and Australia
The main advantage of trading using opposite Qbe Insurance and Australia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qbe Insurance position performs unexpectedly, Australia 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 Australia will offset losses from the drop in Australia's long position.Qbe Insurance vs. Clime Investment Management | Qbe Insurance vs. Vitura Health Limited | Qbe Insurance vs. MotorCycle Holdings | Qbe Insurance vs. Resonance Health |
Australia vs. REGAL ASIAN INVESTMENTS | Australia vs. Sandon Capital Investments | Australia vs. Zeotech | Australia vs. Thorney Technologies |
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 Stocks Directory module to find actively traded stocks across global markets.
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