Correlation Between QBE Insurance and Intel
Can any of the company-specific risk be diversified away by investing in both QBE Insurance and Intel 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 Intel 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 Intel, you can compare the effects of market volatilities on QBE Insurance and Intel 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 Intel. Check out your portfolio center. Please also check ongoing floating volatility patterns of QBE Insurance and Intel.
Diversification Opportunities for QBE Insurance and Intel
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between QBE and Intel is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding QBE Insurance Group and Intel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intel 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 Intel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intel has no effect on the direction of QBE Insurance i.e., QBE Insurance and Intel go up and down completely randomly.
Pair Corralation between QBE Insurance and Intel
Assuming the 90 days horizon QBE Insurance Group is expected to generate 0.44 times more return on investment than Intel. However, QBE Insurance Group is 2.28 times less risky than Intel. It trades about 0.04 of its potential returns per unit of risk. Intel is currently generating about -0.05 per unit of risk. If you would invest 1,063 in QBE Insurance Group on September 13, 2024 and sell it today you would earn a total of 77.00 from holding QBE Insurance Group or generate 7.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.34% |
| Values | Daily Returns |
QBE Insurance Group vs. Intel
Performance |
| Timeline |
| QBE Insurance Group |
| Intel |
QBE Insurance and Intel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with QBE Insurance and Intel
The main advantage of trading using opposite QBE Insurance and Intel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if QBE Insurance position performs unexpectedly, Intel 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 Intel will offset losses from the drop in Intel's long position.| QBE Insurance vs. Insurance Australia Group | QBE Insurance vs. Superior Plus Corp | QBE Insurance vs. SIVERS SEMICONDUCTORS AB | QBE Insurance vs. CHINA HUARONG ENERHD 50 |
| Intel vs. Fevertree Drinks PLC | Intel vs. HANOVER INSURANCE | Intel vs. Thai Beverage Public | Intel vs. QBE Insurance Group |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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