Correlation Between QBE Insurance and Vienna Insurance
Can any of the company-specific risk be diversified away by investing in both QBE Insurance and Vienna Insurance 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 Vienna Insurance 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 Vienna Insurance Group, you can compare the effects of market volatilities on QBE Insurance and Vienna Insurance 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 Vienna Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of QBE Insurance and Vienna Insurance.
Diversification Opportunities for QBE Insurance and Vienna Insurance
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between QBE and Vienna is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding QBE Insurance Group and Vienna Insurance Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vienna Insurance 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 Vienna Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vienna Insurance has no effect on the direction of QBE Insurance i.e., QBE Insurance and Vienna Insurance go up and down completely randomly.
Pair Corralation between QBE Insurance and Vienna Insurance
Assuming the 90 days horizon QBE Insurance Group is expected to generate 1.25 times more return on investment than Vienna Insurance. However, QBE Insurance is 1.25 times more volatile than Vienna Insurance Group. It trades about 0.06 of its potential returns per unit of risk. Vienna Insurance Group is currently generating about 0.05 per unit of risk. If you would invest 762.00 in QBE Insurance Group on October 13, 2024 and sell it today you would earn a total of 408.00 from holding QBE Insurance Group or generate 53.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
QBE Insurance Group vs. Vienna Insurance Group
Performance |
| Timeline |
| QBE Insurance Group |
| Vienna Insurance |
QBE Insurance and Vienna Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with QBE Insurance and Vienna Insurance
The main advantage of trading using opposite QBE Insurance and Vienna Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if QBE Insurance position performs unexpectedly, Vienna Insurance 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 Vienna Insurance will offset losses from the drop in Vienna Insurance's long position.| QBE Insurance vs. Fukuyama Transporting Co | QBE Insurance vs. Cal Maine Foods | QBE Insurance vs. NTG Nordic Transport | QBE Insurance vs. SOEDER SPORTFISKE AB |
| Vienna Insurance vs. GLOBUS MEDICAL A | Vienna Insurance vs. SPECTRAL MEDICAL | Vienna Insurance vs. SERI INDUSTRIAL EO | Vienna Insurance vs. ARDAGH METAL PACDL 0001 |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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