Correlation Between QBE Insurance and Treasury Wine
Can any of the company-specific risk be diversified away by investing in both QBE Insurance and Treasury Wine 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 Treasury Wine 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 Treasury Wine Estates, you can compare the effects of market volatilities on QBE Insurance and Treasury Wine 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 Treasury Wine. Check out your portfolio center. Please also check ongoing floating volatility patterns of QBE Insurance and Treasury Wine.
Diversification Opportunities for QBE Insurance and Treasury Wine
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between QBE and Treasury is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding QBE Insurance Group and Treasury Wine Estates in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Treasury Wine Estates 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 Treasury Wine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Treasury Wine Estates has no effect on the direction of QBE Insurance i.e., QBE Insurance and Treasury Wine go up and down completely randomly.
Pair Corralation between QBE Insurance and Treasury Wine
Assuming the 90 days horizon QBE Insurance Group is expected to generate 0.65 times more return on investment than Treasury Wine. However, QBE Insurance Group is 1.54 times less risky than Treasury Wine. It trades about 0.12 of its potential returns per unit of risk. Treasury Wine Estates is currently generating about 0.06 per unit of risk. If you would invest 1,210 in QBE Insurance Group on November 27, 2024 and sell it today you would earn a total of 40.00 from holding QBE Insurance Group or generate 3.31% 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. Treasury Wine Estates
Performance |
| Timeline |
| QBE Insurance Group |
| Treasury Wine Estates |
QBE Insurance and Treasury Wine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with QBE Insurance and Treasury Wine
The main advantage of trading using opposite QBE Insurance and Treasury Wine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if QBE Insurance position performs unexpectedly, Treasury Wine 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 Treasury Wine will offset losses from the drop in Treasury Wine's long position.| QBE Insurance vs. Datalogic SpA | QBE Insurance vs. Information Services International Dentsu | QBE Insurance vs. China Datang | QBE Insurance vs. MagnaChip Semiconductor Corp |
| Treasury Wine vs. United Breweries Co | Treasury Wine vs. National Beverage Corp | Treasury Wine vs. CORNISH METALS INC | Treasury Wine vs. China Resources Beer |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |