Correlation Between USWE SPORTS and QBE Insurance
Can any of the company-specific risk be diversified away by investing in both USWE SPORTS 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 USWE SPORTS and QBE Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between USWE SPORTS AB and QBE Insurance Group, you can compare the effects of market volatilities on USWE SPORTS 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 USWE SPORTS with a short position of QBE Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of USWE SPORTS and QBE Insurance.
Diversification Opportunities for USWE SPORTS and QBE Insurance
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between USWE and QBE is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding USWE SPORTS AB 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 USWE SPORTS 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 USWE SPORTS AB 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 USWE SPORTS i.e., USWE SPORTS and QBE Insurance go up and down completely randomly.
Pair Corralation between USWE SPORTS and QBE Insurance
Assuming the 90 days horizon USWE SPORTS AB is expected to under-perform the QBE Insurance. In addition to that, USWE SPORTS is 2.27 times more volatile than QBE Insurance Group. It trades about -0.07 of its total potential returns per unit of risk. QBE Insurance Group is currently generating about 0.12 per unit of volatility. If you would invest 813.00 in QBE Insurance Group on September 4, 2024 and sell it today you would earn a total of 407.00 from holding QBE Insurance Group or generate 50.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
USWE SPORTS AB vs. QBE Insurance Group
Performance |
| Timeline |
| USWE SPORTS AB |
| QBE Insurance Group |
USWE SPORTS and QBE Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with USWE SPORTS and QBE Insurance
The main advantage of trading using opposite USWE SPORTS and QBE Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if USWE SPORTS 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.| USWE SPORTS vs. SCANSOURCE | USWE SPORTS vs. Uber Technologies | USWE SPORTS vs. GALENA MINING LTD | USWE SPORTS vs. Playtech plc |
| QBE Insurance vs. Hitachi Construction Machinery | QBE Insurance vs. INDOFOOD AGRI RES | QBE Insurance vs. Lery Seafood Group | QBE Insurance vs. HF FOODS GRP |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |