Correlation Between QBE Insurance and DICKS Sporting
Can any of the company-specific risk be diversified away by investing in both QBE Insurance and DICKS Sporting 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 DICKS Sporting 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 DICKS Sporting Goods, you can compare the effects of market volatilities on QBE Insurance and DICKS Sporting 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 DICKS Sporting. Check out your portfolio center. Please also check ongoing floating volatility patterns of QBE Insurance and DICKS Sporting.
Diversification Opportunities for QBE Insurance and DICKS Sporting
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between QBE and DICKS is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding QBE Insurance Group and DICKS Sporting Goods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DICKS Sporting Goods 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 DICKS Sporting. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DICKS Sporting Goods has no effect on the direction of QBE Insurance i.e., QBE Insurance and DICKS Sporting go up and down completely randomly.
Pair Corralation between QBE Insurance and DICKS Sporting
Assuming the 90 days horizon QBE Insurance Group is expected to generate 0.44 times more return on investment than DICKS Sporting. However, QBE Insurance Group is 2.25 times less risky than DICKS Sporting. It trades about 0.19 of its potential returns per unit of risk. DICKS Sporting Goods is currently generating about -0.01 per unit of risk. If you would invest 1,130 in QBE Insurance Group on October 19, 2024 and sell it today you would earn a total of 40.00 from holding QBE Insurance Group or generate 3.54% 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. DICKS Sporting Goods
Performance |
| Timeline |
| QBE Insurance Group |
| DICKS Sporting Goods |
QBE Insurance and DICKS Sporting Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with QBE Insurance and DICKS Sporting
The main advantage of trading using opposite QBE Insurance and DICKS Sporting positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if QBE Insurance position performs unexpectedly, DICKS Sporting 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 DICKS Sporting will offset losses from the drop in DICKS Sporting's long position.| QBE Insurance vs. SWISS WATER DECAFFCOFFEE | QBE Insurance vs. BROADWIND ENRGY | QBE Insurance vs. Broadridge Financial Solutions | QBE Insurance vs. Gaztransport Technigaz SA |
| DICKS Sporting vs. PARKEN Sport Entertainment | DICKS Sporting vs. REVO INSURANCE SPA | DICKS Sporting vs. QBE Insurance Group | DICKS Sporting vs. SIERRA METALS |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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