Correlation Between QBE Insurance and DICKER DATA
Can any of the company-specific risk be diversified away by investing in both QBE Insurance and DICKER DATA 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 DICKER DATA 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 DICKER DATA LTD, you can compare the effects of market volatilities on QBE Insurance and DICKER DATA 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 DICKER DATA. Check out your portfolio center. Please also check ongoing floating volatility patterns of QBE Insurance and DICKER DATA.
Diversification Opportunities for QBE Insurance and DICKER DATA
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between QBE and DICKER is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding QBE Insurance Group and DICKER DATA LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DICKER DATA LTD 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 DICKER DATA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DICKER DATA LTD has no effect on the direction of QBE Insurance i.e., QBE Insurance and DICKER DATA go up and down completely randomly.
Pair Corralation between QBE Insurance and DICKER DATA
Assuming the 90 days horizon QBE Insurance Group is expected to generate 0.42 times more return on investment than DICKER DATA. However, QBE Insurance Group is 2.36 times less risky than DICKER DATA. It trades about 0.23 of its potential returns per unit of risk. DICKER DATA LTD is currently generating about 0.08 per unit of risk. If you would invest 1,150 in QBE Insurance Group on November 30, 2024 and sell it today you would earn a total of 150.00 from holding QBE Insurance Group or generate 13.04% 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. DICKER DATA LTD
Performance |
| Timeline |
| QBE Insurance Group |
| DICKER DATA LTD |
QBE Insurance and DICKER DATA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with QBE Insurance and DICKER DATA
The main advantage of trading using opposite QBE Insurance and DICKER DATA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if QBE Insurance position performs unexpectedly, DICKER DATA 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 DICKER DATA will offset losses from the drop in DICKER DATA's long position.| QBE Insurance vs. British American Tobacco | QBE Insurance vs. PARKEN SPORT ENT | QBE Insurance vs. Sportsmans Warehouse Holdings | QBE Insurance vs. UNIQA INSURANCE GR |
| DICKER DATA vs. IBU tec advanced materials | DICKER DATA vs. Cognizant Technology Solutions | DICKER DATA vs. NEWELL RUBBERMAID | DICKER DATA vs. Easy Software AG |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |