Correlation Between American West and Qbe Insurance
Can any of the company-specific risk be diversified away by investing in both American West 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 American West and Qbe Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American West Metals and Qbe Insurance Group, you can compare the effects of market volatilities on American West 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 American West with a short position of Qbe Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of American West and Qbe Insurance.
Diversification Opportunities for American West and Qbe Insurance
-0.85 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between American and Qbe is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding American West Metals 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 American West 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 American West Metals 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 American West i.e., American West and Qbe Insurance go up and down completely randomly.
Pair Corralation between American West and Qbe Insurance
Assuming the 90 days trading horizon American West Metals is expected to under-perform the Qbe Insurance. In addition to that, American West is 4.02 times more volatile than Qbe Insurance Group. It trades about -0.08 of its total potential returns per unit of risk. Qbe Insurance Group is currently generating about 0.06 per unit of volatility. If you would invest 1,762 in Qbe Insurance Group on September 3, 2024 and sell it today you would earn a total of 238.00 from holding Qbe Insurance Group or generate 13.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
American West Metals vs. Qbe Insurance Group
Performance |
| Timeline |
| American West Metals |
| Qbe Insurance Group |
American West and Qbe Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American West and Qbe Insurance
The main advantage of trading using opposite American West and Qbe Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American West 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.| American West vs. Northern Star Resources | American West vs. Evolution Mining | American West vs. Bluescope Steel | American West vs. Aneka Tambang Tbk |
| Qbe Insurance vs. Audio Pixels Holdings | Qbe Insurance vs. Iodm | Qbe Insurance vs. Nsx | Qbe Insurance vs. TTG Fintech |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |