Correlation Between Ainsworth Game and Qbe Insurance
Can any of the company-specific risk be diversified away by investing in both Ainsworth Game 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 Ainsworth Game and Qbe Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ainsworth Game Technology and Qbe Insurance Group, you can compare the effects of market volatilities on Ainsworth Game 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 Ainsworth Game with a short position of Qbe Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ainsworth Game and Qbe Insurance.
Diversification Opportunities for Ainsworth Game and Qbe Insurance
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Ainsworth and Qbe is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Ainsworth Game Technology 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 Ainsworth Game 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 Ainsworth Game Technology 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 Ainsworth Game i.e., Ainsworth Game and Qbe Insurance go up and down completely randomly.
Pair Corralation between Ainsworth Game and Qbe Insurance
Assuming the 90 days trading horizon Ainsworth Game Technology is expected to under-perform the Qbe Insurance. In addition to that, Ainsworth Game is 1.9 times more volatile than Qbe Insurance Group. It trades about -0.04 of its total potential returns per unit of risk. Qbe Insurance Group is currently generating about 0.07 per unit of volatility. If you would invest 1,799 in Qbe Insurance Group on September 1, 2024 and sell it today you would earn a total of 201.00 from holding Qbe Insurance Group or generate 11.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ainsworth Game Technology vs. Qbe Insurance Group
Performance |
| Timeline |
| Ainsworth Game Technology |
| Qbe Insurance Group |
Ainsworth Game and Qbe Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ainsworth Game and Qbe Insurance
The main advantage of trading using opposite Ainsworth Game and Qbe Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ainsworth Game 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.| Ainsworth Game vs. G8 Education | Ainsworth Game vs. Richmond Vanadium Technology | Ainsworth Game vs. Charter Hall Education | Ainsworth Game vs. Queste Communications |
| Qbe Insurance vs. Diversified United Investment | Qbe Insurance vs. Bank of Queensland | Qbe Insurance vs. Home Consortium | Qbe Insurance vs. Carlton Investments |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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