Correlation Between Abcellera Biologics and QBE Insurance
Can any of the company-specific risk be diversified away by investing in both Abcellera Biologics 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 Abcellera Biologics and QBE Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Abcellera Biologics and QBE Insurance Group, you can compare the effects of market volatilities on Abcellera Biologics 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 Abcellera Biologics with a short position of QBE Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Abcellera Biologics and QBE Insurance.
Diversification Opportunities for Abcellera Biologics and QBE Insurance
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Abcellera and QBE is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Abcellera Biologics 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 Abcellera Biologics 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 Abcellera Biologics 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 Abcellera Biologics i.e., Abcellera Biologics and QBE Insurance go up and down completely randomly.
Pair Corralation between Abcellera Biologics and QBE Insurance
Given the investment horizon of 90 days Abcellera Biologics is expected to generate 1.65 times more return on investment than QBE Insurance. However, Abcellera Biologics is 1.65 times more volatile than QBE Insurance Group. It trades about 0.1 of its potential returns per unit of risk. QBE Insurance Group is currently generating about 0.08 per unit of risk. If you would invest 260.00 in Abcellera Biologics on August 29, 2024 and sell it today you would earn a total of 40.00 from holding Abcellera Biologics or generate 15.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 97.67% |
| Values | Daily Returns |
Abcellera Biologics vs. QBE Insurance Group
Performance |
| Timeline |
| Abcellera Biologics |
| QBE Insurance Group |
Abcellera Biologics and QBE Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Abcellera Biologics and QBE Insurance
The main advantage of trading using opposite Abcellera Biologics and QBE Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Abcellera Biologics 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.| Abcellera Biologics vs. Bright Minds Biosciences | Abcellera Biologics vs. HP Inc | Abcellera Biologics vs. Intel | Abcellera Biologics vs. Chevron Corp |
| QBE Insurance vs. Progressive Corp | QBE Insurance vs. White Mountains Insurance | QBE Insurance vs. Chubb | QBE Insurance vs. W R Berkley |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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