Correlation Between QBE Insurance and Tradegate
Can any of the company-specific risk be diversified away by investing in both QBE Insurance and Tradegate 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 Tradegate 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 Tradegate AG Wertpapierhandelsbank, you can compare the effects of market volatilities on QBE Insurance and Tradegate 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 Tradegate. Check out your portfolio center. Please also check ongoing floating volatility patterns of QBE Insurance and Tradegate.
Diversification Opportunities for QBE Insurance and Tradegate
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between QBE and Tradegate is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding QBE Insurance Group and Tradegate AG Wertpapierhandels in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tradegate AG Wertpap 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 Tradegate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tradegate AG Wertpap has no effect on the direction of QBE Insurance i.e., QBE Insurance and Tradegate go up and down completely randomly.
Pair Corralation between QBE Insurance and Tradegate
Assuming the 90 days horizon QBE Insurance Group is expected to generate 1.04 times more return on investment than Tradegate. However, QBE Insurance is 1.04 times more volatile than Tradegate AG Wertpapierhandelsbank. It trades about 0.09 of its potential returns per unit of risk. Tradegate AG Wertpapierhandelsbank is currently generating about -0.05 per unit of risk. If you would invest 827.00 in QBE Insurance Group on September 14, 2024 and sell it today you would earn a total of 313.00 from holding QBE Insurance Group or generate 37.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
QBE Insurance Group vs. Tradegate AG Wertpapierhandels
Performance |
| Timeline |
| QBE Insurance Group |
| Tradegate AG Wertpap |
QBE Insurance and Tradegate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with QBE Insurance and Tradegate
The main advantage of trading using opposite QBE Insurance and Tradegate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if QBE Insurance position performs unexpectedly, Tradegate 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 Tradegate will offset losses from the drop in Tradegate'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 |
| Tradegate vs. Superior Plus Corp | Tradegate vs. SIVERS SEMICONDUCTORS AB | Tradegate vs. CHINA HUARONG ENERHD 50 | Tradegate vs. NORDIC HALIBUT AS |
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 CEOs Directory module to screen CEOs from public companies around the world.
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