Correlation Between QBE Insurance and Elmos Semiconductor
Can any of the company-specific risk be diversified away by investing in both QBE Insurance and Elmos Semiconductor 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 Elmos Semiconductor 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 Elmos Semiconductor SE, you can compare the effects of market volatilities on QBE Insurance and Elmos Semiconductor 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 Elmos Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of QBE Insurance and Elmos Semiconductor.
Diversification Opportunities for QBE Insurance and Elmos Semiconductor
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between QBE and Elmos is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding QBE Insurance Group and Elmos Semiconductor SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elmos Semiconductor 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 Elmos Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elmos Semiconductor has no effect on the direction of QBE Insurance i.e., QBE Insurance and Elmos Semiconductor go up and down completely randomly.
Pair Corralation between QBE Insurance and Elmos Semiconductor
Assuming the 90 days horizon QBE Insurance Group is expected to generate 0.51 times more return on investment than Elmos Semiconductor. However, QBE Insurance Group is 1.95 times less risky than Elmos Semiconductor. It trades about 0.09 of its potential returns per unit of risk. Elmos Semiconductor SE is currently generating about -0.01 per unit of risk. If you would invest 995.00 in QBE Insurance Group on October 19, 2024 and sell it today you would earn a total of 175.00 from holding QBE Insurance Group or generate 17.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
QBE Insurance Group vs. Elmos Semiconductor SE
Performance |
| Timeline |
| QBE Insurance Group |
| Elmos Semiconductor |
QBE Insurance and Elmos Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with QBE Insurance and Elmos Semiconductor
The main advantage of trading using opposite QBE Insurance and Elmos Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if QBE Insurance position performs unexpectedly, Elmos Semiconductor 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 Elmos Semiconductor will offset losses from the drop in Elmos Semiconductor'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 |
| Elmos Semiconductor vs. DATAGROUP SE | Elmos Semiconductor vs. NTT DATA | Elmos Semiconductor vs. Teradata Corp | Elmos Semiconductor vs. Tyson Foods |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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