Correlation Between ANGLO ASIAN and QBE Insurance
Can any of the company-specific risk be diversified away by investing in both ANGLO ASIAN 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 ANGLO ASIAN and QBE Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ANGLO ASIAN MINING and QBE Insurance Group, you can compare the effects of market volatilities on ANGLO ASIAN 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 ANGLO ASIAN with a short position of QBE Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANGLO ASIAN and QBE Insurance.
Diversification Opportunities for ANGLO ASIAN and QBE Insurance
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ANGLO and QBE is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding ANGLO ASIAN MINING 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 ANGLO ASIAN 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 ANGLO ASIAN MINING 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 ANGLO ASIAN i.e., ANGLO ASIAN and QBE Insurance go up and down completely randomly.
Pair Corralation between ANGLO ASIAN and QBE Insurance
Assuming the 90 days trading horizon ANGLO ASIAN is expected to generate 8.99 times less return on investment than QBE Insurance. In addition to that, ANGLO ASIAN is 2.2 times more volatile than QBE Insurance Group. It trades about 0.01 of its total potential returns per unit of risk. QBE Insurance Group is currently generating about 0.23 per unit of volatility. If you would invest 1,140 in QBE Insurance Group on October 21, 2024 and sell it today you would earn a total of 50.00 from holding QBE Insurance Group or generate 4.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ANGLO ASIAN MINING vs. QBE Insurance Group
Performance |
| Timeline |
| ANGLO ASIAN MINING |
| QBE Insurance Group |
ANGLO ASIAN and QBE Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANGLO ASIAN and QBE Insurance
The main advantage of trading using opposite ANGLO ASIAN and QBE Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANGLO ASIAN 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.| ANGLO ASIAN vs. Air Lease | ANGLO ASIAN vs. Charter Communications | ANGLO ASIAN vs. ecotel communication ag | ANGLO ASIAN vs. HUTCHISON TELECOMM |
| QBE Insurance vs. IMAGIN MEDICAL INC | QBE Insurance vs. ONWARD MEDICAL BV | QBE Insurance vs. Diamyd Medical AB | QBE Insurance vs. ANGLO ASIAN MINING |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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