Correlation Between Evolution Gaming and QBE Insurance
Can any of the company-specific risk be diversified away by investing in both Evolution Gaming 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 Evolution Gaming and QBE Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Evolution Gaming Group and QBE Insurance Group, you can compare the effects of market volatilities on Evolution Gaming 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 Evolution Gaming with a short position of QBE Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Evolution Gaming and QBE Insurance.
Diversification Opportunities for Evolution Gaming and QBE Insurance
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Evolution and QBE is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Evolution Gaming Group 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 Evolution Gaming 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 Evolution Gaming Group 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 Evolution Gaming i.e., Evolution Gaming and QBE Insurance go up and down completely randomly.
Pair Corralation between Evolution Gaming and QBE Insurance
Assuming the 90 days horizon Evolution Gaming Group is expected to under-perform the QBE Insurance. But the pink sheet apears to be less risky and, when comparing its historical volatility, Evolution Gaming Group is 1.28 times less risky than QBE Insurance. The pink sheet trades about -0.03 of its potential returns per unit of risk. The QBE Insurance Group is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,023 in QBE Insurance Group on September 12, 2024 and sell it today you would earn a total of 199.00 from holding QBE Insurance Group or generate 19.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 65.06% |
| Values | Daily Returns |
Evolution Gaming Group vs. QBE Insurance Group
Performance |
| Timeline |
| Evolution Gaming |
| QBE Insurance Group |
Evolution Gaming and QBE Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Evolution Gaming and QBE Insurance
The main advantage of trading using opposite Evolution Gaming and QBE Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Evolution Gaming 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.| Evolution Gaming vs. Intema Solutions | Evolution Gaming vs. 888 Holdings | Evolution Gaming vs. Royal Wins | Evolution Gaming vs. Real Luck Group |
| QBE Insurance vs. Root Inc | QBE Insurance vs. Bank of America | QBE Insurance vs. Aerovate Therapeutics | QBE Insurance vs. SoundHound AI |
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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