Correlation Between QBE Insurance and JINS HOLDINGS
Can any of the company-specific risk be diversified away by investing in both QBE Insurance and JINS HOLDINGS 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 JINS HOLDINGS 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 JINS HOLDINGS INC, you can compare the effects of market volatilities on QBE Insurance and JINS HOLDINGS 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 JINS HOLDINGS. Check out your portfolio center. Please also check ongoing floating volatility patterns of QBE Insurance and JINS HOLDINGS.
Diversification Opportunities for QBE Insurance and JINS HOLDINGS
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between QBE and JINS is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding QBE Insurance Group and JINS HOLDINGS INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JINS HOLDINGS INC 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 JINS HOLDINGS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JINS HOLDINGS INC has no effect on the direction of QBE Insurance i.e., QBE Insurance and JINS HOLDINGS go up and down completely randomly.
Pair Corralation between QBE Insurance and JINS HOLDINGS
Assuming the 90 days horizon QBE Insurance Group is expected to under-perform the JINS HOLDINGS. But the stock apears to be less risky and, when comparing its historical volatility, QBE Insurance Group is 1.73 times less risky than JINS HOLDINGS. The stock trades about -0.03 of its potential returns per unit of risk. The JINS HOLDINGS INC is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 3,880 in JINS HOLDINGS INC on October 22, 2024 and sell it today you would earn a total of 40.00 from holding JINS HOLDINGS INC or generate 1.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
QBE Insurance Group vs. JINS HOLDINGS INC
Performance |
| Timeline |
| QBE Insurance Group |
| JINS HOLDINGS INC |
QBE Insurance and JINS HOLDINGS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with QBE Insurance and JINS HOLDINGS
The main advantage of trading using opposite QBE Insurance and JINS HOLDINGS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if QBE Insurance position performs unexpectedly, JINS HOLDINGS 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 JINS HOLDINGS will offset losses from the drop in JINS HOLDINGS's long position.| QBE Insurance vs. SMA Solar Technology | QBE Insurance vs. Easy Software AG | QBE Insurance vs. GEELY AUTOMOBILE | QBE Insurance vs. Grupo Carso SAB |
| JINS HOLDINGS vs. OPKO HEALTH | JINS HOLDINGS vs. US Physical Therapy | JINS HOLDINGS vs. NAGOYA RAILROAD | JINS HOLDINGS vs. WESANA HEALTH HOLD |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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