Correlation Between QBE Insurance and Kering SA
Can any of the company-specific risk be diversified away by investing in both QBE Insurance and Kering SA 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 Kering SA 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 Kering SA, you can compare the effects of market volatilities on QBE Insurance and Kering SA 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 Kering SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of QBE Insurance and Kering SA.
Diversification Opportunities for QBE Insurance and Kering SA
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between QBE and Kering is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding QBE Insurance Group and Kering SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kering SA 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 Kering SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kering SA has no effect on the direction of QBE Insurance i.e., QBE Insurance and Kering SA go up and down completely randomly.
Pair Corralation between QBE Insurance and Kering SA
Assuming the 90 days horizon QBE Insurance Group is expected to generate 0.67 times more return on investment than Kering SA. However, QBE Insurance Group is 1.49 times less risky than Kering SA. It trades about 0.09 of its potential returns per unit of risk. Kering SA is currently generating about -0.07 per unit of risk. If you would invest 818.00 in QBE Insurance Group on September 14, 2024 and sell it today you would earn a total of 342.00 from holding QBE Insurance Group or generate 41.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
QBE Insurance Group vs. Kering SA
Performance |
| Timeline |
| QBE Insurance Group |
| Kering SA |
QBE Insurance and Kering SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with QBE Insurance and Kering SA
The main advantage of trading using opposite QBE Insurance and Kering SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if QBE Insurance position performs unexpectedly, Kering SA 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 Kering SA will offset losses from the drop in Kering SA'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 |
| Kering SA vs. BOSTON BEER A | Kering SA vs. Fevertree Drinks PLC | Kering SA vs. QBE Insurance Group | Kering SA vs. JSC Halyk bank |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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