Correlation Between Qbe Insurance and Credit Clear
Can any of the company-specific risk be diversified away by investing in both Qbe Insurance and Credit Clear 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 Credit Clear 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 Credit Clear, you can compare the effects of market volatilities on Qbe Insurance and Credit Clear 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 Credit Clear. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qbe Insurance and Credit Clear.
Diversification Opportunities for Qbe Insurance and Credit Clear
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Qbe and Credit is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Qbe Insurance Group and Credit Clear in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Credit Clear 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 Credit Clear. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Credit Clear has no effect on the direction of Qbe Insurance i.e., Qbe Insurance and Credit Clear go up and down completely randomly.
Pair Corralation between Qbe Insurance and Credit Clear
Assuming the 90 days trading horizon Qbe Insurance Group is expected to generate 0.45 times more return on investment than Credit Clear. However, Qbe Insurance Group is 2.24 times less risky than Credit Clear. It trades about 0.22 of its potential returns per unit of risk. Credit Clear is currently generating about 0.03 per unit of risk. If you would invest 1,628 in Qbe Insurance Group on October 31, 2024 and sell it today you would earn a total of 417.00 from holding Qbe Insurance Group or generate 25.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Qbe Insurance Group vs. Credit Clear
Performance |
| Timeline |
| Qbe Insurance Group |
| Credit Clear |
Qbe Insurance and Credit Clear Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qbe Insurance and Credit Clear
The main advantage of trading using opposite Qbe Insurance and Credit Clear positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qbe Insurance position performs unexpectedly, Credit Clear 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 Credit Clear will offset losses from the drop in Credit Clear's long position.| Qbe Insurance vs. MetalsGrove Mining | Qbe Insurance vs. ACDC Metals | Qbe Insurance vs. Argo Investments | Qbe Insurance vs. Aurelia Metals |
| Credit Clear vs. Homeco Daily Needs | Credit Clear vs. Charter Hall Education | Credit Clear vs. Argo Investments | Credit Clear vs. A1 Investments Resources |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |