Correlation Between QBE Insurance and Volkswagen
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By analyzing existing cross correlation between QBE Insurance Group and Volkswagen AG VZO, you can compare the effects of market volatilities on QBE Insurance and Volkswagen 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 Volkswagen. Check out your portfolio center. Please also check ongoing floating volatility patterns of QBE Insurance and Volkswagen.
Diversification Opportunities for QBE Insurance and Volkswagen
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between QBE and Volkswagen is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding QBE Insurance Group and Volkswagen AG VZO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Volkswagen AG VZO 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 Volkswagen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Volkswagen AG VZO has no effect on the direction of QBE Insurance i.e., QBE Insurance and Volkswagen go up and down completely randomly.
Pair Corralation between QBE Insurance and Volkswagen
Assuming the 90 days horizon QBE Insurance is expected to generate 1.15 times less return on investment than Volkswagen. But when comparing it to its historical volatility, QBE Insurance Group is 1.61 times less risky than Volkswagen. It trades about 0.12 of its potential returns per unit of risk. Volkswagen AG VZO is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 9,798 in Volkswagen AG VZO on November 27, 2024 and sell it today you would earn a total of 347.00 from holding Volkswagen AG VZO or generate 3.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
QBE Insurance Group vs. Volkswagen AG VZO
Performance |
| Timeline |
| QBE Insurance Group |
| Volkswagen AG VZO |
QBE Insurance and Volkswagen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with QBE Insurance and Volkswagen
The main advantage of trading using opposite QBE Insurance and Volkswagen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if QBE Insurance position performs unexpectedly, Volkswagen 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 Volkswagen will offset losses from the drop in Volkswagen'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 |
| Volkswagen vs. BE Semiconductor Industries | Volkswagen vs. ZhongAn Online P | Volkswagen vs. RCS Mediagroup SpA | Volkswagen vs. ELMOS SEMICONDUCTOR |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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