Correlation Between Qbe Insurance and Event Hospitality
Can any of the company-specific risk be diversified away by investing in both Qbe Insurance and Event Hospitality 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 Event Hospitality 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 Event Hospitality and, you can compare the effects of market volatilities on Qbe Insurance and Event Hospitality 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 Event Hospitality. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qbe Insurance and Event Hospitality.
Diversification Opportunities for Qbe Insurance and Event Hospitality
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Qbe and Event is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Qbe Insurance Group and Event Hospitality and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Event Hospitality 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 Event Hospitality. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Event Hospitality has no effect on the direction of Qbe Insurance i.e., Qbe Insurance and Event Hospitality go up and down completely randomly.
Pair Corralation between Qbe Insurance and Event Hospitality
Assuming the 90 days trading horizon Qbe Insurance Group is expected to generate 0.86 times more return on investment than Event Hospitality. However, Qbe Insurance Group is 1.16 times less risky than Event Hospitality. It trades about 0.07 of its potential returns per unit of risk. Event Hospitality and is currently generating about 0.01 per unit of risk. If you would invest 1,249 in Qbe Insurance Group on September 20, 2024 and sell it today you would earn a total of 643.00 from holding Qbe Insurance Group or generate 51.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Qbe Insurance Group vs. Event Hospitality and
Performance |
| Timeline |
| Qbe Insurance Group |
| Event Hospitality |
Qbe Insurance and Event Hospitality Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qbe Insurance and Event Hospitality
The main advantage of trading using opposite Qbe Insurance and Event Hospitality positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qbe Insurance position performs unexpectedly, Event Hospitality 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 Event Hospitality will offset losses from the drop in Event Hospitality's long position.| Qbe Insurance vs. Phoslock Environmental Technologies | Qbe Insurance vs. Bisalloy Steel Group | Qbe Insurance vs. Prime Financial Group | Qbe Insurance vs. Bell Financial Group |
| Event Hospitality vs. Audio Pixels Holdings | Event Hospitality vs. Iodm | Event Hospitality vs. Nsx | Event Hospitality vs. TTG Fintech |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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