Correlation Between QBE INSURGROUP and VIAPLAY GROUP
Can any of the company-specific risk be diversified away by investing in both QBE INSURGROUP and VIAPLAY 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 INSURGROUP and VIAPLAY GROUP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between QBE INSURGROUP and VIAPLAY GROUP AB, you can compare the effects of market volatilities on QBE INSURGROUP and VIAPLAY 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 INSURGROUP with a short position of VIAPLAY GROUP. Check out your portfolio center. Please also check ongoing floating volatility patterns of QBE INSURGROUP and VIAPLAY GROUP.
Diversification Opportunities for QBE INSURGROUP and VIAPLAY GROUP
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between QBE and VIAPLAY is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding QBE INSURGROUP and VIAPLAY GROUP AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VIAPLAY GROUP AB and QBE INSURGROUP 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 INSURGROUP are associated (or correlated) with VIAPLAY GROUP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VIAPLAY GROUP AB has no effect on the direction of QBE INSURGROUP i.e., QBE INSURGROUP and VIAPLAY GROUP go up and down completely randomly.
Pair Corralation between QBE INSURGROUP and VIAPLAY GROUP
Assuming the 90 days trading horizon QBE INSURGROUP is expected to generate 76.75 times less return on investment than VIAPLAY GROUP. But when comparing it to its historical volatility, QBE INSURGROUP is 57.04 times less risky than VIAPLAY GROUP. It trades about 0.17 of its potential returns per unit of risk. VIAPLAY GROUP AB is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 5.44 in VIAPLAY GROUP AB on December 1, 2024 and sell it today you would lose (2.27) from holding VIAPLAY GROUP AB or give up 41.73% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
QBE INSURGROUP vs. VIAPLAY GROUP AB
Performance |
| Timeline |
| QBE INSURGROUP |
| VIAPLAY GROUP AB |
QBE INSURGROUP and VIAPLAY GROUP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with QBE INSURGROUP and VIAPLAY GROUP
The main advantage of trading using opposite QBE INSURGROUP and VIAPLAY GROUP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if QBE INSURGROUP position performs unexpectedly, VIAPLAY 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 VIAPLAY GROUP will offset losses from the drop in VIAPLAY GROUP's long position.| QBE INSURGROUP vs. INVITATION HOMES DL | QBE INSURGROUP vs. CyberArk Software | QBE INSURGROUP vs. ScanSource | QBE INSURGROUP vs. Autohome |
| VIAPLAY GROUP vs. Mount Gibson Iron | VIAPLAY GROUP vs. AOI Electronics Co | VIAPLAY GROUP vs. KIMBALL ELECTRONICS | VIAPLAY GROUP vs. IRONVELD PLC LS |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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