Correlation Between Qbe Insurance and Ainsworth Game
Can any of the company-specific risk be diversified away by investing in both Qbe Insurance and Ainsworth Game 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 Qbe Insurance and Ainsworth Game into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Qbe Insurance Group and Ainsworth Game Technology, you can compare the effects of market volatilities on Qbe Insurance and Ainsworth Game 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 Qbe Insurance with a short position of Ainsworth Game. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qbe Insurance and Ainsworth Game.
Diversification Opportunities for Qbe Insurance and Ainsworth Game
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Qbe and Ainsworth is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Qbe Insurance Group and Ainsworth Game Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ainsworth Game Technology and Qbe Insurance 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 Qbe Insurance Group are associated (or correlated) with Ainsworth Game. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ainsworth Game Technology has no effect on the direction of Qbe Insurance i.e., Qbe Insurance and Ainsworth Game go up and down completely randomly.
Pair Corralation between Qbe Insurance and Ainsworth Game
Assuming the 90 days trading horizon Qbe Insurance Group is expected to generate 0.53 times more return on investment than Ainsworth Game. However, Qbe Insurance Group is 1.9 times less risky than Ainsworth Game. It trades about 0.07 of its potential returns per unit of risk. Ainsworth Game Technology is currently generating about -0.04 per unit of risk. If you would invest 1,799 in Qbe Insurance Group on September 1, 2024 and sell it today you would earn a total of 201.00 from holding Qbe Insurance Group or generate 11.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Qbe Insurance Group vs. Ainsworth Game Technology
Performance |
| Timeline |
| Qbe Insurance Group |
| Ainsworth Game Technology |
Qbe Insurance and Ainsworth Game Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qbe Insurance and Ainsworth Game
The main advantage of trading using opposite Qbe Insurance and Ainsworth Game positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qbe Insurance position performs unexpectedly, Ainsworth Game 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 Ainsworth Game will offset losses from the drop in Ainsworth Game's long position.| Qbe Insurance vs. Diversified United Investment | Qbe Insurance vs. Bank of Queensland | Qbe Insurance vs. Home Consortium | Qbe Insurance vs. Carlton Investments |
| Ainsworth Game vs. G8 Education | Ainsworth Game vs. Richmond Vanadium Technology | Ainsworth Game vs. Charter Hall Education | Ainsworth Game vs. Queste Communications |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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