Correlation Between Qbe Insurance and Coronado Global
Can any of the company-specific risk be diversified away by investing in both Qbe Insurance and Coronado Global 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 Coronado Global 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 Coronado Global Resources, you can compare the effects of market volatilities on Qbe Insurance and Coronado Global 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 Coronado Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qbe Insurance and Coronado Global.
Diversification Opportunities for Qbe Insurance and Coronado Global
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Qbe and Coronado is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Qbe Insurance Group and Coronado Global Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coronado Global Resources 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 Coronado Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coronado Global Resources has no effect on the direction of Qbe Insurance i.e., Qbe Insurance and Coronado Global go up and down completely randomly.
Pair Corralation between Qbe Insurance and Coronado Global
Assuming the 90 days trading horizon Qbe Insurance Group is expected to generate 0.43 times more return on investment than Coronado Global. However, Qbe Insurance Group is 2.32 times less risky than Coronado Global. It trades about 0.11 of its potential returns per unit of risk. Coronado Global Resources is currently generating about -0.12 per unit of risk. If you would invest 1,654 in Qbe Insurance Group on October 18, 2024 and sell it today you would earn a total of 299.00 from holding Qbe Insurance Group or generate 18.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.21% |
| Values | Daily Returns |
Qbe Insurance Group vs. Coronado Global Resources
Performance |
| Timeline |
| Qbe Insurance Group |
| Coronado Global Resources |
Qbe Insurance and Coronado Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qbe Insurance and Coronado Global
The main advantage of trading using opposite Qbe Insurance and Coronado Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qbe Insurance position performs unexpectedly, Coronado Global 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 Coronado Global will offset losses from the drop in Coronado Global's long position.| Qbe Insurance vs. WiseTech Global Limited | Qbe Insurance vs. Queste Communications | Qbe Insurance vs. Technology One | Qbe Insurance vs. Collins Foods |
| Coronado Global vs. Qbe Insurance Group | Coronado Global vs. Latitude Financial Services | Coronado Global vs. Hotel Property Investments | Coronado Global vs. Auswide Bank |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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