Correlation Between QBE Insurance and OAKTRSPECLENDNEW
Can any of the company-specific risk be diversified away by investing in both QBE Insurance and OAKTRSPECLENDNEW 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 OAKTRSPECLENDNEW 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 OAKTRSPECLENDNEW, you can compare the effects of market volatilities on QBE Insurance and OAKTRSPECLENDNEW 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 OAKTRSPECLENDNEW. Check out your portfolio center. Please also check ongoing floating volatility patterns of QBE Insurance and OAKTRSPECLENDNEW.
Diversification Opportunities for QBE Insurance and OAKTRSPECLENDNEW
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between QBE and OAKTRSPECLENDNEW is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding QBE Insurance Group and OAKTRSPECLENDNEW in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OAKTRSPECLENDNEW 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 OAKTRSPECLENDNEW. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OAKTRSPECLENDNEW has no effect on the direction of QBE Insurance i.e., QBE Insurance and OAKTRSPECLENDNEW go up and down completely randomly.
Pair Corralation between QBE Insurance and OAKTRSPECLENDNEW
Assuming the 90 days horizon QBE Insurance Group is expected to generate 0.78 times more return on investment than OAKTRSPECLENDNEW. However, QBE Insurance Group is 1.28 times less risky than OAKTRSPECLENDNEW. It trades about 0.49 of its potential returns per unit of risk. OAKTRSPECLENDNEW is currently generating about -0.02 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 Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
QBE Insurance Group vs. OAKTRSPECLENDNEW
Performance |
| Timeline |
| QBE Insurance Group |
| OAKTRSPECLENDNEW |
QBE Insurance and OAKTRSPECLENDNEW Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with QBE Insurance and OAKTRSPECLENDNEW
The main advantage of trading using opposite QBE Insurance and OAKTRSPECLENDNEW positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if QBE Insurance position performs unexpectedly, OAKTRSPECLENDNEW 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 OAKTRSPECLENDNEW will offset losses from the drop in OAKTRSPECLENDNEW'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 |
| OAKTRSPECLENDNEW vs. Apple Inc | OAKTRSPECLENDNEW vs. Apple Inc | OAKTRSPECLENDNEW vs. Apple Inc | OAKTRSPECLENDNEW vs. Apple Inc |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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