Correlation Between Qbe Insurance and Eureka Group
Can any of the company-specific risk be diversified away by investing in both Qbe Insurance and Eureka Group 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 Eureka Group 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 Eureka Group Holdings, you can compare the effects of market volatilities on Qbe Insurance and Eureka Group 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 Eureka Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qbe Insurance and Eureka Group.
Diversification Opportunities for Qbe Insurance and Eureka Group
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Qbe and Eureka is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Qbe Insurance Group and Eureka Group Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eureka Group Holdings 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 Eureka Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eureka Group Holdings has no effect on the direction of Qbe Insurance i.e., Qbe Insurance and Eureka Group go up and down completely randomly.
Pair Corralation between Qbe Insurance and Eureka Group
Assuming the 90 days trading horizon Qbe Insurance Group is expected to generate 0.69 times more return on investment than Eureka Group. However, Qbe Insurance Group is 1.44 times less risky than Eureka Group. It trades about 0.08 of its potential returns per unit of risk. Eureka Group Holdings is currently generating about 0.06 per unit of risk. If you would invest 1,204 in Qbe Insurance Group on August 30, 2024 and sell it today you would earn a total of 796.00 from holding Qbe Insurance Group or generate 66.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Qbe Insurance Group vs. Eureka Group Holdings
Performance |
| Timeline |
| Qbe Insurance Group |
| Eureka Group Holdings |
Qbe Insurance and Eureka Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qbe Insurance and Eureka Group
The main advantage of trading using opposite Qbe Insurance and Eureka Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qbe Insurance position performs unexpectedly, Eureka Group 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 Eureka Group will offset losses from the drop in Eureka Group's long position.| Qbe Insurance vs. Premier Investments | Qbe Insurance vs. Retail Food Group | Qbe Insurance vs. REGAL ASIAN INVESTMENTS | Qbe Insurance vs. BKI Investment |
| Eureka Group vs. Scentre Group | Eureka Group vs. Vicinity Centres Re | Eureka Group vs. Charter Hall Retail | Eureka Group vs. Cromwell Property Group |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |