Correlation Between KEYCORP and QBE Insurance
Specify exactly 2 symbols:
By analyzing existing cross correlation between KEYCORP MEDIUM TERM and QBE Insurance Group, you can compare the effects of market volatilities on KEYCORP 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 KEYCORP with a short position of QBE Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of KEYCORP and QBE Insurance.
Diversification Opportunities for KEYCORP and QBE Insurance
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between KEYCORP and QBE is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding KEYCORP MEDIUM TERM 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 KEYCORP 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 KEYCORP MEDIUM TERM 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 KEYCORP i.e., KEYCORP and QBE Insurance go up and down completely randomly.
Pair Corralation between KEYCORP and QBE Insurance
Assuming the 90 days trading horizon KEYCORP MEDIUM TERM is expected to under-perform the QBE Insurance. But the bond apears to be less risky and, when comparing its historical volatility, KEYCORP MEDIUM TERM is 5.06 times less risky than QBE Insurance. The bond trades about -0.08 of its potential returns per unit of risk. The QBE Insurance Group is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,101 in QBE Insurance Group on September 19, 2024 and sell it today you would earn a total of 89.00 from holding QBE Insurance Group or generate 8.08% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 98.41% |
Values | Daily Returns |
KEYCORP MEDIUM TERM vs. QBE Insurance Group
Performance |
Timeline |
KEYCORP MEDIUM TERM |
QBE Insurance Group |
KEYCORP and QBE Insurance Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with KEYCORP and QBE Insurance
The main advantage of trading using opposite KEYCORP and QBE Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KEYCORP 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.KEYCORP vs. QBE Insurance Group | KEYCORP vs. Perseus Mining Limited | KEYCORP vs. Mangazeya Mining | KEYCORP vs. Sun Life Financial |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
Global Correlations Find global opportunities by holding instruments from different markets | |
Content Syndication Quickly integrate customizable finance content to your own investment portal | |
Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |