Correlation Between QBE Insurance and WOORI FIN
Can any of the company-specific risk be diversified away by investing in both QBE Insurance and WOORI FIN 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 WOORI FIN 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 WOORI FIN GRP, you can compare the effects of market volatilities on QBE Insurance and WOORI FIN 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 WOORI FIN. Check out your portfolio center. Please also check ongoing floating volatility patterns of QBE Insurance and WOORI FIN.
Diversification Opportunities for QBE Insurance and WOORI FIN
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between QBE and WOORI is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding QBE Insurance Group and WOORI FIN GRP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WOORI FIN GRP 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 WOORI FIN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WOORI FIN GRP has no effect on the direction of QBE Insurance i.e., QBE Insurance and WOORI FIN go up and down completely randomly.
Pair Corralation between QBE Insurance and WOORI FIN
Assuming the 90 days horizon QBE Insurance Group is expected to generate 0.96 times more return on investment than WOORI FIN. However, QBE Insurance Group is 1.04 times less risky than WOORI FIN. It trades about 0.17 of its potential returns per unit of risk. WOORI FIN GRP is currently generating about 0.01 per unit of risk. If you would invest 1,150 in QBE Insurance Group on October 24, 2024 and sell it today you would earn a total of 40.00 from holding QBE Insurance Group or generate 3.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
QBE Insurance Group vs. WOORI FIN GRP
Performance |
| Timeline |
| QBE Insurance Group |
| WOORI FIN GRP |
QBE Insurance and WOORI FIN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with QBE Insurance and WOORI FIN
The main advantage of trading using opposite QBE Insurance and WOORI FIN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if QBE Insurance position performs unexpectedly, WOORI FIN 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 WOORI FIN will offset losses from the drop in WOORI FIN's long position.| QBE Insurance vs. Tokyu Construction Co | QBE Insurance vs. DAIRY FARM INTL | QBE Insurance vs. Titan Machinery | QBE Insurance vs. CarsalesCom |
| WOORI FIN vs. REVO INSURANCE SPA | WOORI FIN vs. Carnegie Clean Energy | WOORI FIN vs. QBE Insurance Group | WOORI FIN vs. VIENNA INSURANCE GR |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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