Correlation Between QBE Insurance and Aegon NV
Can any of the company-specific risk be diversified away by investing in both QBE Insurance and Aegon NV 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 Aegon NV 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 Aegon NV PERP, you can compare the effects of market volatilities on QBE Insurance and Aegon NV 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 Aegon NV. Check out your portfolio center. Please also check ongoing floating volatility patterns of QBE Insurance and Aegon NV.
Diversification Opportunities for QBE Insurance and Aegon NV
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between QBE and Aegon is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding QBE Insurance Group and Aegon NV PERP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aegon NV PERP 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 Aegon NV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aegon NV PERP has no effect on the direction of QBE Insurance i.e., QBE Insurance and Aegon NV go up and down completely randomly.
Pair Corralation between QBE Insurance and Aegon NV
If you would invest 895.00 in QBE Insurance Group on September 12, 2024 and sell it today you would earn a total of 306.00 from holding QBE Insurance Group or generate 34.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
QBE Insurance Group vs. Aegon NV PERP
Performance |
| Timeline |
| QBE Insurance Group |
| Aegon NV PERP |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
QBE Insurance and Aegon NV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with QBE Insurance and Aegon NV
The main advantage of trading using opposite QBE Insurance and Aegon NV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if QBE Insurance position performs unexpectedly, Aegon NV 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 Aegon NV will offset losses from the drop in Aegon NV's long position.| QBE Insurance vs. Root Inc | QBE Insurance vs. Bank of America | QBE Insurance vs. Aerovate Therapeutics | QBE Insurance vs. SoundHound AI |
| Aegon NV vs. Willamette Valley Vineyards | Aegon NV vs. RadNet Inc | Aegon NV vs. SunLink Health Systems | Aegon NV vs. Merit Medical Systems |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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