Correlation Between QBE Insurance and Apple
Can any of the company-specific risk be diversified away by investing in both QBE Insurance and Apple 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 Apple 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 Apple Inc, you can compare the effects of market volatilities on QBE Insurance and Apple 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 Apple. Check out your portfolio center. Please also check ongoing floating volatility patterns of QBE Insurance and Apple.
Diversification Opportunities for QBE Insurance and Apple
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between QBE and Apple is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding QBE Insurance Group and Apple Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apple 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 Apple. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apple Inc has no effect on the direction of QBE Insurance i.e., QBE Insurance and Apple go up and down completely randomly.
Pair Corralation between QBE Insurance and Apple
Assuming the 90 days horizon QBE Insurance Group is expected to generate 1.41 times more return on investment than Apple. However, QBE Insurance is 1.41 times more volatile than Apple Inc. It trades about 0.04 of its potential returns per unit of risk. Apple Inc is currently generating about 0.04 per unit of risk. If you would invest 1,180 in QBE Insurance Group on October 10, 2024 and sell it today you would earn a total of 10.00 from holding QBE Insurance Group or generate 0.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
QBE Insurance Group vs. Apple Inc
Performance |
| Timeline |
| QBE Insurance Group |
| Apple Inc |
QBE Insurance and Apple Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with QBE Insurance and Apple
The main advantage of trading using opposite QBE Insurance and Apple positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if QBE Insurance position performs unexpectedly, Apple 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 Apple will offset losses from the drop in Apple's long position.| QBE Insurance vs. PICC Property and | QBE Insurance vs. Superior Plus Corp | QBE Insurance vs. NMI Holdings | QBE Insurance vs. SIVERS SEMICONDUCTORS AB |
| Apple vs. CVR Medical Corp | Apple vs. Western Copper and | Apple vs. GLOBUS MEDICAL A | Apple vs. SPECTRAL MEDICAL |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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