Correlation Between Regal Funds and Qbe Insurance
Can any of the company-specific risk be diversified away by investing in both Regal Funds and Qbe 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 Regal Funds and Qbe Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Regal Funds Management and Qbe Insurance Group, you can compare the effects of market volatilities on Regal Funds and Qbe 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 Regal Funds with a short position of Qbe Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Regal Funds and Qbe Insurance.
Diversification Opportunities for Regal Funds and Qbe Insurance
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Regal and Qbe is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Regal Funds Management and Qbe Insurance Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qbe Insurance Group and Regal Funds 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 Regal Funds Management are associated (or correlated) with Qbe Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qbe Insurance Group has no effect on the direction of Regal Funds i.e., Regal Funds and Qbe Insurance go up and down completely randomly.
Pair Corralation between Regal Funds and Qbe Insurance
Assuming the 90 days trading horizon Regal Funds is expected to generate 1.54 times less return on investment than Qbe Insurance. In addition to that, Regal Funds is 2.08 times more volatile than Qbe Insurance Group. It trades about 0.1 of its total potential returns per unit of risk. Qbe Insurance Group is currently generating about 0.32 per unit of volatility. If you would invest 1,969 in Qbe Insurance Group on November 4, 2024 and sell it today you would earn a total of 125.00 from holding Qbe Insurance Group or generate 6.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Regal Funds Management vs. Qbe Insurance Group
Performance |
| Timeline |
| Regal Funds Management |
| Qbe Insurance Group |
Regal Funds and Qbe Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Regal Funds and Qbe Insurance
The main advantage of trading using opposite Regal Funds and Qbe Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Regal Funds position performs unexpectedly, Qbe 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 Qbe Insurance will offset losses from the drop in Qbe Insurance's long position.| Regal Funds vs. Sports Entertainment Group | Regal Funds vs. Queste Communications | Regal Funds vs. Aussie Broadband | Regal Funds vs. Aeon Metals |
| Qbe Insurance vs. Advanced Braking Technology | Qbe Insurance vs. Sandon Capital Investments | Qbe Insurance vs. Navigator Global Investments | Qbe Insurance vs. Regal Funds Management |
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.
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