Correlation Between MeVis Medical and QBE Insurance
Can any of the company-specific risk be diversified away by investing in both MeVis Medical 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 MeVis Medical and QBE Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MeVis Medical Solutions and QBE Insurance Group, you can compare the effects of market volatilities on MeVis Medical 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 MeVis Medical with a short position of QBE Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of MeVis Medical and QBE Insurance.
Diversification Opportunities for MeVis Medical and QBE Insurance
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between MeVis and QBE is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding MeVis Medical Solutions 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 MeVis Medical 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 MeVis Medical Solutions 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 MeVis Medical i.e., MeVis Medical and QBE Insurance go up and down completely randomly.
Pair Corralation between MeVis Medical and QBE Insurance
Assuming the 90 days trading horizon MeVis Medical is expected to generate 223.71 times less return on investment than QBE Insurance. But when comparing it to its historical volatility, MeVis Medical Solutions is 1.75 times less risky than QBE Insurance. It trades about 0.0 of its potential returns per unit of risk. QBE Insurance Group is currently generating about 0.52 of returns per unit of risk over similar time horizon. If you would invest 1,030 in QBE Insurance Group on September 1, 2024 and sell it today you would earn a total of 190.00 from holding QBE Insurance Group or generate 18.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MeVis Medical Solutions vs. QBE Insurance Group
Performance |
| Timeline |
| MeVis Medical Solutions |
| QBE Insurance Group |
MeVis Medical and QBE Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MeVis Medical and QBE Insurance
The main advantage of trading using opposite MeVis Medical and QBE Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MeVis Medical 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.| MeVis Medical vs. G III Apparel Group | MeVis Medical vs. AM EAGLE OUTFITTERS | MeVis Medical vs. RYU Apparel | MeVis Medical vs. Fast Retailing Co |
| QBE Insurance vs. Sumitomo Rubber Industries | QBE Insurance vs. SANOK RUBBER ZY | QBE Insurance vs. Applied Materials | QBE Insurance vs. NEWELL RUBBERMAID |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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