Correlation Between QBE Insurance and MUENCHRUECKUNSADR
Can any of the company-specific risk be diversified away by investing in both QBE Insurance and MUENCHRUECKUNSADR 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 MUENCHRUECKUNSADR 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 MUENCHRUECKUNSADR 110, you can compare the effects of market volatilities on QBE Insurance and MUENCHRUECKUNSADR 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 MUENCHRUECKUNSADR. Check out your portfolio center. Please also check ongoing floating volatility patterns of QBE Insurance and MUENCHRUECKUNSADR.
Diversification Opportunities for QBE Insurance and MUENCHRUECKUNSADR
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between QBE and MUENCHRUECKUNSADR is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding QBE Insurance Group and MUENCHRUECKUNSADR 110 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MUENCHRUECKUNSADR 110 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 MUENCHRUECKUNSADR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MUENCHRUECKUNSADR 110 has no effect on the direction of QBE Insurance i.e., QBE Insurance and MUENCHRUECKUNSADR go up and down completely randomly.
Pair Corralation between QBE Insurance and MUENCHRUECKUNSADR
Assuming the 90 days horizon QBE Insurance Group is expected to generate 0.7 times more return on investment than MUENCHRUECKUNSADR. However, QBE Insurance Group is 1.43 times less risky than MUENCHRUECKUNSADR. It trades about 0.59 of its potential returns per unit of risk. MUENCHRUECKUNSADR 110 is currently generating about 0.21 per unit of risk. If you would invest 1,020 in QBE Insurance Group on September 3, 2024 and sell it today you would earn a total of 200.00 from holding QBE Insurance Group or generate 19.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
QBE Insurance Group vs. MUENCHRUECKUNSADR 110
Performance |
| Timeline |
| QBE Insurance Group |
| MUENCHRUECKUNSADR 110 |
QBE Insurance and MUENCHRUECKUNSADR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with QBE Insurance and MUENCHRUECKUNSADR
The main advantage of trading using opposite QBE Insurance and MUENCHRUECKUNSADR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if QBE Insurance position performs unexpectedly, MUENCHRUECKUNSADR 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 MUENCHRUECKUNSADR will offset losses from the drop in MUENCHRUECKUNSADR's long position.| QBE Insurance vs. INFORMATION SVC GRP | QBE Insurance vs. Fidelity National Information | QBE Insurance vs. PUBLIC STORAGE PRFO | QBE Insurance vs. DOCDATA |
| MUENCHRUECKUNSADR vs. Singapore Airlines Limited | MUENCHRUECKUNSADR vs. ON SEMICONDUCTOR | MUENCHRUECKUNSADR vs. CDN IMPERIAL BANK | MUENCHRUECKUNSADR 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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