Correlation Between Qbe Insurance and Retail Food
Can any of the company-specific risk be diversified away by investing in both Qbe Insurance and Retail Food 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 Retail Food 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 Retail Food Group, you can compare the effects of market volatilities on Qbe Insurance and Retail Food 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 Retail Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qbe Insurance and Retail Food.
Diversification Opportunities for Qbe Insurance and Retail Food
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Qbe and Retail is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Qbe Insurance Group and Retail Food Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Retail Food Group 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 Retail Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Retail Food Group has no effect on the direction of Qbe Insurance i.e., Qbe Insurance and Retail Food go up and down completely randomly.
Pair Corralation between Qbe Insurance and Retail Food
Assuming the 90 days trading horizon Qbe Insurance Group is expected to generate 0.57 times more return on investment than Retail Food. However, Qbe Insurance Group is 1.76 times less risky than Retail Food. It trades about 0.33 of its potential returns per unit of risk. Retail Food Group is currently generating about 0.18 per unit of risk. If you would invest 1,721 in Qbe Insurance Group on August 29, 2024 and sell it today you would earn a total of 213.00 from holding Qbe Insurance Group or generate 12.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Qbe Insurance Group vs. Retail Food Group
Performance |
| Timeline |
| Qbe Insurance Group |
| Retail Food Group |
Qbe Insurance and Retail Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qbe Insurance and Retail Food
The main advantage of trading using opposite Qbe Insurance and Retail Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qbe Insurance position performs unexpectedly, Retail Food 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 Retail Food will offset losses from the drop in Retail Food's long position.| Qbe Insurance vs. Red Hill Iron | Qbe Insurance vs. Platinum Asset Management | Qbe Insurance vs. Carlton Investments | Qbe Insurance vs. Hotel Property Investments |
| Retail Food vs. Autosports Group | Retail Food vs. AiMedia Technologies | Retail Food vs. BKI Investment | Retail Food vs. ARN Media Limited |
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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |