Correlation Between QBE Insurance and Volcan
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By analyzing existing cross correlation between QBE Insurance Group and Volcan Compania Minera, you can compare the effects of market volatilities on QBE Insurance and Volcan 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 Volcan. Check out your portfolio center. Please also check ongoing floating volatility patterns of QBE Insurance and Volcan.
Diversification Opportunities for QBE Insurance and Volcan
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between QBE and Volcan is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding QBE Insurance Group and Volcan Compania Minera in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Volcan Compania Minera 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 Volcan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Volcan Compania Minera has no effect on the direction of QBE Insurance i.e., QBE Insurance and Volcan go up and down completely randomly.
Pair Corralation between QBE Insurance and Volcan
Assuming the 90 days horizon QBE Insurance Group is expected to generate 0.96 times more return on investment than Volcan. However, QBE Insurance Group is 1.04 times less risky than Volcan. It trades about 0.05 of its potential returns per unit of risk. Volcan Compania Minera is currently generating about 0.01 per unit of risk. If you would invest 735.00 in QBE Insurance Group on September 1, 2024 and sell it today you would earn a total of 430.00 from holding QBE Insurance Group or generate 58.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 90.07% |
| Values | Daily Returns |
QBE Insurance Group vs. Volcan Compania Minera
Performance |
| Timeline |
| QBE Insurance Group |
| Volcan Compania Minera |
QBE Insurance and Volcan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with QBE Insurance and Volcan
The main advantage of trading using opposite QBE Insurance and Volcan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if QBE Insurance position performs unexpectedly, Volcan 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 Volcan will offset losses from the drop in Volcan's long position.The idea behind QBE Insurance Group and Volcan Compania Minera pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Volcan vs. Summit Materials | Volcan vs. Aegon NV ADR | Volcan vs. QBE Insurance Group | Volcan vs. Uranium Energy Corp |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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