Correlation Between EPSILON HEALTHCARE and QBE Insurance
Can any of the company-specific risk be diversified away by investing in both EPSILON HEALTHCARE 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 EPSILON HEALTHCARE and QBE Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EPSILON HEALTHCARE LTD and QBE Insurance Group, you can compare the effects of market volatilities on EPSILON HEALTHCARE 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 EPSILON HEALTHCARE with a short position of QBE Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of EPSILON HEALTHCARE and QBE Insurance.
Diversification Opportunities for EPSILON HEALTHCARE and QBE Insurance
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between EPSILON and QBE is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding EPSILON HEALTHCARE LTD 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 EPSILON HEALTHCARE 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 EPSILON HEALTHCARE LTD 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 EPSILON HEALTHCARE i.e., EPSILON HEALTHCARE and QBE Insurance go up and down completely randomly.
Pair Corralation between EPSILON HEALTHCARE and QBE Insurance
If you would invest 1,160 in QBE Insurance Group on November 2, 2024 and sell it today you would earn a total of 60.00 from holding QBE Insurance Group or generate 5.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
EPSILON HEALTHCARE LTD vs. QBE Insurance Group
Performance |
| Timeline |
| EPSILON HEALTHCARE LTD |
| QBE Insurance Group |
EPSILON HEALTHCARE and QBE Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EPSILON HEALTHCARE and QBE Insurance
The main advantage of trading using opposite EPSILON HEALTHCARE and QBE Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EPSILON HEALTHCARE 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.| EPSILON HEALTHCARE vs. CanSino Biologics | EPSILON HEALTHCARE vs. Japan Tobacco | EPSILON HEALTHCARE vs. Yuexiu Transport Infrastructure | EPSILON HEALTHCARE vs. SAFEROADS HLDGS |
| QBE Insurance vs. CARSALESCOM | QBE Insurance vs. Aegean Airlines SA | QBE Insurance vs. Regal Hotels International | QBE Insurance vs. MELIA HOTELS |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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