Correlation Between FUYO GENERAL and QBE Insurance
Can any of the company-specific risk be diversified away by investing in both FUYO GENERAL 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 FUYO GENERAL and QBE Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FUYO GENERAL LEASE and QBE Insurance Group, you can compare the effects of market volatilities on FUYO GENERAL 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 FUYO GENERAL with a short position of QBE Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of FUYO GENERAL and QBE Insurance.
Diversification Opportunities for FUYO GENERAL and QBE Insurance
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between FUYO and QBE is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding FUYO GENERAL LEASE 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 FUYO GENERAL 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 FUYO GENERAL LEASE 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 FUYO GENERAL i.e., FUYO GENERAL and QBE Insurance go up and down completely randomly.
Pair Corralation between FUYO GENERAL and QBE Insurance
Assuming the 90 days horizon FUYO GENERAL is expected to generate 2.56 times less return on investment than QBE Insurance. But when comparing it to its historical volatility, FUYO GENERAL LEASE is 1.05 times less risky than QBE Insurance. It trades about 0.03 of its potential returns per unit of risk. QBE Insurance Group is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 740.00 in QBE Insurance Group on September 3, 2024 and sell it today you would earn a total of 480.00 from holding QBE Insurance Group or generate 64.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
FUYO GENERAL LEASE vs. QBE Insurance Group
Performance |
| Timeline |
| FUYO GENERAL LEASE |
| QBE Insurance Group |
FUYO GENERAL and QBE Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FUYO GENERAL and QBE Insurance
The main advantage of trading using opposite FUYO GENERAL and QBE Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FUYO GENERAL 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.| FUYO GENERAL vs. United Rentals | FUYO GENERAL vs. Ashtead Group plc | FUYO GENERAL vs. WillScot Mobile Mini | FUYO GENERAL vs. Sixt SE |
| QBE Insurance vs. INFORMATION SVC GRP | QBE Insurance vs. Fidelity National Information | QBE Insurance vs. PUBLIC STORAGE PRFO | QBE Insurance vs. DOCDATA |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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