Correlation Between Ingenia Communities and Qbe Insurance
Can any of the company-specific risk be diversified away by investing in both Ingenia Communities 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 Ingenia Communities and Qbe Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ingenia Communities Group and Qbe Insurance Group, you can compare the effects of market volatilities on Ingenia Communities 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 Ingenia Communities with a short position of Qbe Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ingenia Communities and Qbe Insurance.
Diversification Opportunities for Ingenia Communities and Qbe Insurance
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Ingenia and Qbe is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Ingenia Communities 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 Ingenia Communities 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 Ingenia Communities 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 Ingenia Communities i.e., Ingenia Communities and Qbe Insurance go up and down completely randomly.
Pair Corralation between Ingenia Communities and Qbe Insurance
Assuming the 90 days trading horizon Ingenia Communities Group is expected to generate 0.6 times more return on investment than Qbe Insurance. However, Ingenia Communities Group is 1.68 times less risky than Qbe Insurance. It trades about 0.01 of its potential returns per unit of risk. Qbe Insurance Group is currently generating about -0.01 per unit of risk. If you would invest 542.00 in Ingenia Communities Group on January 14, 2025 and sell it today you would earn a total of 0.00 from holding Ingenia Communities Group or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ingenia Communities Group vs. Qbe Insurance Group
Performance |
| Timeline |
| Ingenia Communities |
| Qbe Insurance Group |
Ingenia Communities and Qbe Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ingenia Communities and Qbe Insurance
The main advantage of trading using opposite Ingenia Communities and Qbe Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ingenia Communities 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.| Ingenia Communities vs. Scentre Group | Ingenia Communities vs. Vicinity Centres Re | Ingenia Communities vs. Charter Hall Retail | Ingenia Communities vs. Cromwell Property Group |
| Qbe Insurance vs. Mayfield Childcare | Qbe Insurance vs. Phoslock Environmental Technologies | Qbe Insurance vs. Data3 | Qbe Insurance vs. Global Data Centre |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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