Correlation Between Qbe Insurance and Stelar Metals
Can any of the company-specific risk be diversified away by investing in both Qbe Insurance and Stelar Metals 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 Stelar Metals 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 Stelar Metals, you can compare the effects of market volatilities on Qbe Insurance and Stelar Metals 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 Stelar Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qbe Insurance and Stelar Metals.
Diversification Opportunities for Qbe Insurance and Stelar Metals
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Qbe and Stelar is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding Qbe Insurance Group and Stelar Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stelar Metals 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 Stelar Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stelar Metals has no effect on the direction of Qbe Insurance i.e., Qbe Insurance and Stelar Metals go up and down completely randomly.
Pair Corralation between Qbe Insurance and Stelar Metals
Assuming the 90 days trading horizon Qbe Insurance Group is expected to generate 0.51 times more return on investment than Stelar Metals. However, Qbe Insurance Group is 1.97 times less risky than Stelar Metals. It trades about 0.11 of its potential returns per unit of risk. Stelar Metals is currently generating about -0.01 per unit of risk. If you would invest 1,849 in Qbe Insurance Group on September 12, 2024 and sell it today you would earn a total of 56.00 from holding Qbe Insurance Group or generate 3.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Qbe Insurance Group vs. Stelar Metals
Performance |
| Timeline |
| Qbe Insurance Group |
| Stelar Metals |
Qbe Insurance and Stelar Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qbe Insurance and Stelar Metals
The main advantage of trading using opposite Qbe Insurance and Stelar Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qbe Insurance position performs unexpectedly, Stelar Metals 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 Stelar Metals will offset losses from the drop in Stelar Metals' long position.| Qbe Insurance vs. Aneka Tambang Tbk | Qbe Insurance vs. Commonwealth Bank | Qbe Insurance vs. BHP Group Limited | Qbe Insurance vs. Rio Tinto |
| Stelar Metals vs. Perseus Mining | Stelar Metals vs. Bailador Technology Invest | Stelar Metals vs. Black Rock Mining | Stelar Metals vs. Aristocrat Leisure |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |