Correlation Between Apple and QBE INSURGROUP
Can any of the company-specific risk be diversified away by investing in both Apple and QBE INSURGROUP 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 Apple and QBE INSURGROUP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apple Inc and QBE INSURGROUP, you can compare the effects of market volatilities on Apple and QBE INSURGROUP 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 Apple with a short position of QBE INSURGROUP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apple and QBE INSURGROUP.
Diversification Opportunities for Apple and QBE INSURGROUP
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Apple and QBE is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc and QBE INSURGROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on QBE INSURGROUP and Apple 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 Apple Inc are associated (or correlated) with QBE INSURGROUP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of QBE INSURGROUP has no effect on the direction of Apple i.e., Apple and QBE INSURGROUP go up and down completely randomly.
Pair Corralation between Apple and QBE INSURGROUP
If you would invest 21,807 in Apple Inc on November 27, 2024 and sell it today you would earn a total of 1,838 from holding Apple Inc or generate 8.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Apple Inc vs. QBE INSURGROUP
Performance |
| Timeline |
| Apple Inc |
| QBE INSURGROUP |
Risk-Adjusted Performance
Insignificant
Weak | Strong |
Apple and QBE INSURGROUP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apple and QBE INSURGROUP
The main advantage of trading using opposite Apple and QBE INSURGROUP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apple position performs unexpectedly, QBE INSURGROUP 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 INSURGROUP will offset losses from the drop in QBE INSURGROUP's long position.| Apple vs. United Utilities Group | Apple vs. Diversified Healthcare Trust | Apple vs. New Residential Investment | Apple vs. Guangdong Investment Limited |
| QBE INSURGROUP vs. ANGANG STEEL H | QBE INSURGROUP vs. BANK OCHINA H | QBE INSURGROUP vs. Takark Jelzlogbank Nyrt | QBE INSURGROUP vs. Direct Line Insurance |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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