Correlation Between QBE Insurance and COMINTL BANK
Can any of the company-specific risk be diversified away by investing in both QBE Insurance and COMINTL BANK 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 COMINTL BANK 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 COMINTL BANK ADR1, you can compare the effects of market volatilities on QBE Insurance and COMINTL BANK 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 COMINTL BANK. Check out your portfolio center. Please also check ongoing floating volatility patterns of QBE Insurance and COMINTL BANK.
Diversification Opportunities for QBE Insurance and COMINTL BANK
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between QBE and COMINTL is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding QBE Insurance Group and COMINTL BANK ADR1 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COMINTL BANK ADR1 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 COMINTL BANK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COMINTL BANK ADR1 has no effect on the direction of QBE Insurance i.e., QBE Insurance and COMINTL BANK go up and down completely randomly.
Pair Corralation between QBE Insurance and COMINTL BANK
Assuming the 90 days horizon QBE Insurance Group is expected to generate 0.56 times more return on investment than COMINTL BANK. However, QBE Insurance Group is 1.77 times less risky than COMINTL BANK. It trades about 0.49 of its potential returns per unit of risk. COMINTL BANK ADR1 is currently generating about 0.08 per unit of risk. If you would invest 1,050 in QBE Insurance Group on August 29, 2024 and sell it today you would earn a total of 170.00 from holding QBE Insurance Group or generate 16.19% 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. COMINTL BANK ADR1
Performance |
| Timeline |
| QBE Insurance Group |
| COMINTL BANK ADR1 |
QBE Insurance and COMINTL BANK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with QBE Insurance and COMINTL BANK
The main advantage of trading using opposite QBE Insurance and COMINTL BANK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if QBE Insurance position performs unexpectedly, COMINTL BANK 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 COMINTL BANK will offset losses from the drop in COMINTL BANK's long position.| QBE Insurance vs. Superior Plus Corp | QBE Insurance vs. NMI Holdings | QBE Insurance vs. Origin Agritech | QBE Insurance vs. SIVERS SEMICONDUCTORS AB |
| COMINTL BANK vs. Superior Plus Corp | COMINTL BANK vs. NMI Holdings | COMINTL BANK vs. Origin Agritech | COMINTL BANK vs. SIVERS SEMICONDUCTORS AB |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |