Correlation Between Carnegie Clean and Qbe Insurance
Can any of the company-specific risk be diversified away by investing in both Carnegie Clean 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 Carnegie Clean and Qbe Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Carnegie Clean Energy and Qbe Insurance Group, you can compare the effects of market volatilities on Carnegie Clean 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 Carnegie Clean with a short position of Qbe Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carnegie Clean and Qbe Insurance.
Diversification Opportunities for Carnegie Clean and Qbe Insurance
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Carnegie and Qbe is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Carnegie Clean Energy 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 Carnegie Clean 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 Carnegie Clean Energy 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 Carnegie Clean i.e., Carnegie Clean and Qbe Insurance go up and down completely randomly.
Pair Corralation between Carnegie Clean and Qbe Insurance
Assuming the 90 days trading horizon Carnegie Clean is expected to generate 1.13 times less return on investment than Qbe Insurance. In addition to that, Carnegie Clean is 5.35 times more volatile than Qbe Insurance Group. It trades about 0.05 of its total potential returns per unit of risk. Qbe Insurance Group is currently generating about 0.3 per unit of volatility. If you would invest 1,981 in Qbe Insurance Group on November 7, 2024 and sell it today you would earn a total of 113.00 from holding Qbe Insurance Group or generate 5.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Carnegie Clean Energy vs. Qbe Insurance Group
Performance |
| Timeline |
| Carnegie Clean Energy |
| Qbe Insurance Group |
Carnegie Clean and Qbe Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carnegie Clean and Qbe Insurance
The main advantage of trading using opposite Carnegie Clean and Qbe Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carnegie Clean 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.| Carnegie Clean vs. Clime Investment Management | Carnegie Clean vs. Auctus Alternative Investments | Carnegie Clean vs. Queste Communications | Carnegie Clean vs. Hutchison Telecommunications |
| Qbe Insurance vs. Platinum Asset Management | Qbe Insurance vs. Falcon Metals | Qbe Insurance vs. FireFly Metals | Qbe Insurance vs. Centrex Metals |
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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