Correlation Between QBE Insurance and Calibre Mining
Can any of the company-specific risk be diversified away by investing in both QBE Insurance and Calibre Mining 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 Calibre Mining 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 Calibre Mining Corp, you can compare the effects of market volatilities on QBE Insurance and Calibre Mining 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 Calibre Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of QBE Insurance and Calibre Mining.
Diversification Opportunities for QBE Insurance and Calibre Mining
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between QBE and Calibre is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding QBE Insurance Group and Calibre Mining Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calibre Mining Corp 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 Calibre Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calibre Mining Corp has no effect on the direction of QBE Insurance i.e., QBE Insurance and Calibre Mining go up and down completely randomly.
Pair Corralation between QBE Insurance and Calibre Mining
Assuming the 90 days horizon QBE Insurance Group is expected to generate 0.56 times more return on investment than Calibre Mining. However, QBE Insurance Group is 1.79 times less risky than Calibre Mining. It trades about 0.5 of its potential returns per unit of risk. Calibre Mining Corp is currently generating about -0.1 per unit of risk. If you would invest 1,050 in QBE Insurance Group on August 27, 2024 and sell it today you would earn a total of 170.00 from holding QBE Insurance Group or generate 16.19% 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. Calibre Mining Corp
Performance |
| Timeline |
| QBE Insurance Group |
| Calibre Mining Corp |
QBE Insurance and Calibre Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with QBE Insurance and Calibre Mining
The main advantage of trading using opposite QBE Insurance and Calibre Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if QBE Insurance position performs unexpectedly, Calibre Mining 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 Calibre Mining will offset losses from the drop in Calibre Mining's long position.| QBE Insurance vs. Superior Plus Corp | QBE Insurance vs. NMI Holdings | QBE Insurance vs. Origin Agritech | QBE Insurance vs. SIVERS SEMICONDUCTORS AB |
| Calibre Mining vs. Amkor Technology | Calibre Mining vs. Evolution Mining Limited | Calibre Mining vs. THORNEY TECHS LTD | Calibre Mining vs. LION ONE METALS |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |