Correlation Between Hawsons Iron and Qbe Insurance
Can any of the company-specific risk be diversified away by investing in both Hawsons Iron 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 Hawsons Iron and Qbe Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hawsons Iron and Qbe Insurance Group, you can compare the effects of market volatilities on Hawsons Iron 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 Hawsons Iron with a short position of Qbe Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hawsons Iron and Qbe Insurance.
Diversification Opportunities for Hawsons Iron and Qbe Insurance
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Hawsons and Qbe is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Hawsons Iron 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 Hawsons Iron 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 Hawsons Iron 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 Hawsons Iron i.e., Hawsons Iron and Qbe Insurance go up and down completely randomly.
Pair Corralation between Hawsons Iron and Qbe Insurance
Assuming the 90 days trading horizon Hawsons Iron is expected to under-perform the Qbe Insurance. In addition to that, Hawsons Iron is 5.72 times more volatile than Qbe Insurance Group. It trades about -0.07 of its total potential returns per unit of risk. Qbe Insurance Group is currently generating about 0.02 per unit of volatility. If you would invest 2,000 in Qbe Insurance Group on October 30, 2024 and sell it today you would earn a total of 15.00 from holding Qbe Insurance Group or generate 0.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hawsons Iron vs. Qbe Insurance Group
Performance |
| Timeline |
| Hawsons Iron |
| Qbe Insurance Group |
Hawsons Iron and Qbe Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hawsons Iron and Qbe Insurance
The main advantage of trading using opposite Hawsons Iron and Qbe Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hawsons Iron 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.| Hawsons Iron vs. Spirit Telecom | Hawsons Iron vs. Macquarie Technology Group | Hawsons Iron vs. Cosmo Metals | Hawsons Iron vs. Computershare |
| Qbe Insurance vs. Vulcan Steel | Qbe Insurance vs. Stelar Metals | Qbe Insurance vs. Carnegie Clean Energy | Qbe Insurance vs. Centaurus 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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