Correlation Between Finexia Financial and Qbe Insurance
Can any of the company-specific risk be diversified away by investing in both Finexia Financial 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 Finexia Financial and Qbe Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Finexia Financial Group and Qbe Insurance Group, you can compare the effects of market volatilities on Finexia Financial 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 Finexia Financial with a short position of Qbe Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Finexia Financial and Qbe Insurance.
Diversification Opportunities for Finexia Financial and Qbe Insurance
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Finexia and Qbe is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Finexia Financial 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 Finexia Financial 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 Finexia Financial 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 Finexia Financial i.e., Finexia Financial and Qbe Insurance go up and down completely randomly.
Pair Corralation between Finexia Financial and Qbe Insurance
Assuming the 90 days trading horizon Finexia Financial Group is expected to generate 2.03 times more return on investment than Qbe Insurance. However, Finexia Financial is 2.03 times more volatile than Qbe Insurance Group. It trades about 0.33 of its potential returns per unit of risk. Qbe Insurance Group is currently generating about 0.44 per unit of risk. If you would invest 26.00 in Finexia Financial Group on August 27, 2024 and sell it today you would earn a total of 6.00 from holding Finexia Financial Group or generate 23.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Finexia Financial Group vs. Qbe Insurance Group
Performance |
| Timeline |
| Finexia Financial |
| Qbe Insurance Group |
Finexia Financial and Qbe Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Finexia Financial and Qbe Insurance
The main advantage of trading using opposite Finexia Financial and Qbe Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Finexia Financial 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.| Finexia Financial vs. Renascor Resources | Finexia Financial vs. Venus Metals | Finexia Financial vs. Havilah Resources | Finexia Financial vs. Asara Resources |
| Qbe Insurance vs. Nine Entertainment Co | Qbe Insurance vs. Beston Global Food | Qbe Insurance vs. oOhMedia | Qbe Insurance vs. Aurelia 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |