Correlation Between QBE Insurance and BANKINTER ADR
Can any of the company-specific risk be diversified away by investing in both QBE Insurance and BANKINTER ADR 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 BANKINTER ADR 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 BANKINTER ADR 2007, you can compare the effects of market volatilities on QBE Insurance and BANKINTER ADR 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 BANKINTER ADR. Check out your portfolio center. Please also check ongoing floating volatility patterns of QBE Insurance and BANKINTER ADR.
Diversification Opportunities for QBE Insurance and BANKINTER ADR
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between QBE and BANKINTER is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding QBE Insurance Group and BANKINTER ADR 2007 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BANKINTER ADR 2007 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 BANKINTER ADR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BANKINTER ADR 2007 has no effect on the direction of QBE Insurance i.e., QBE Insurance and BANKINTER ADR go up and down completely randomly.
Pair Corralation between QBE Insurance and BANKINTER ADR
Assuming the 90 days horizon QBE Insurance Group is expected to generate 0.83 times more return on investment than BANKINTER ADR. However, QBE Insurance Group is 1.2 times less risky than BANKINTER ADR. It trades about 0.25 of its potential returns per unit of risk. BANKINTER ADR 2007 is currently generating about 0.01 per unit of risk. If you would invest 1,020 in QBE Insurance Group on August 30, 2024 and sell it today you would earn a total of 170.00 from holding QBE Insurance Group or generate 16.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
QBE Insurance Group vs. BANKINTER ADR 2007
Performance |
| Timeline |
| QBE Insurance Group |
| BANKINTER ADR 2007 |
QBE Insurance and BANKINTER ADR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with QBE Insurance and BANKINTER ADR
The main advantage of trading using opposite QBE Insurance and BANKINTER ADR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if QBE Insurance position performs unexpectedly, BANKINTER ADR 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 BANKINTER ADR will offset losses from the drop in BANKINTER ADR's long position.| QBE Insurance vs. PICC Property and | QBE Insurance vs. Superior Plus Corp | QBE Insurance vs. SIVERS SEMICONDUCTORS AB | QBE Insurance vs. Talanx AG |
| BANKINTER ADR vs. China Communications Services | BANKINTER ADR vs. Iridium Communications | BANKINTER ADR vs. Neinor Homes SA | BANKINTER ADR vs. Corporate Office Properties |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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