Correlation Between QBE Insurance and CORONGLRES CDIS101
Can any of the company-specific risk be diversified away by investing in both QBE Insurance and CORONGLRES CDIS101 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 CORONGLRES CDIS101 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 CORONGLRES CDIS101, you can compare the effects of market volatilities on QBE Insurance and CORONGLRES CDIS101 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 CORONGLRES CDIS101. Check out your portfolio center. Please also check ongoing floating volatility patterns of QBE Insurance and CORONGLRES CDIS101.
Diversification Opportunities for QBE Insurance and CORONGLRES CDIS101
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between QBE and CORONGLRES is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding QBE Insurance Group and CORONGLRES CDIS101 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CORONGLRES CDIS101 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 CORONGLRES CDIS101. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CORONGLRES CDIS101 has no effect on the direction of QBE Insurance i.e., QBE Insurance and CORONGLRES CDIS101 go up and down completely randomly.
Pair Corralation between QBE Insurance and CORONGLRES CDIS101
Assuming the 90 days horizon QBE Insurance Group is expected to generate 0.54 times more return on investment than CORONGLRES CDIS101. However, QBE Insurance Group is 1.85 times less risky than CORONGLRES CDIS101. It trades about 0.07 of its potential returns per unit of risk. CORONGLRES CDIS101 is currently generating about -0.05 per unit of risk. If you would invest 731.00 in QBE Insurance Group on September 13, 2024 and sell it today you would earn a total of 449.00 from holding QBE Insurance Group or generate 61.42% 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. CORONGLRES CDIS101
Performance |
| Timeline |
| QBE Insurance Group |
| CORONGLRES CDIS101 |
QBE Insurance and CORONGLRES CDIS101 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with QBE Insurance and CORONGLRES CDIS101
The main advantage of trading using opposite QBE Insurance and CORONGLRES CDIS101 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if QBE Insurance position performs unexpectedly, CORONGLRES CDIS101 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 CORONGLRES CDIS101 will offset losses from the drop in CORONGLRES CDIS101's long position.| QBE Insurance vs. Insurance Australia Group | QBE Insurance vs. Superior Plus Corp | QBE Insurance vs. SIVERS SEMICONDUCTORS AB | QBE Insurance vs. CHINA HUARONG ENERHD 50 |
| CORONGLRES CDIS101 vs. SCOTT TECHNOLOGY | CORONGLRES CDIS101 vs. X FAB Silicon Foundries | CORONGLRES CDIS101 vs. Vishay Intertechnology | CORONGLRES CDIS101 vs. Microchip Technology Incorporated |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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