Correlation Between Siemens Healthineers and QBE Insurance
Can any of the company-specific risk be diversified away by investing in both Siemens Healthineers 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 Siemens Healthineers and QBE Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Siemens Healthineers AG and QBE Insurance Group, you can compare the effects of market volatilities on Siemens Healthineers 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 Siemens Healthineers with a short position of QBE Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siemens Healthineers and QBE Insurance.
Diversification Opportunities for Siemens Healthineers and QBE Insurance
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Siemens and QBE is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Siemens Healthineers AG 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 Siemens Healthineers 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 Siemens Healthineers AG 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 Siemens Healthineers i.e., Siemens Healthineers and QBE Insurance go up and down completely randomly.
Pair Corralation between Siemens Healthineers and QBE Insurance
Assuming the 90 days horizon Siemens Healthineers AG is expected to generate 1.02 times more return on investment than QBE Insurance. However, Siemens Healthineers is 1.02 times more volatile than QBE Insurance Group. It trades about 0.29 of its potential returns per unit of risk. QBE Insurance Group is currently generating about 0.21 per unit of risk. If you would invest 5,092 in Siemens Healthineers AG on November 2, 2024 and sell it today you would earn a total of 368.00 from holding Siemens Healthineers AG or generate 7.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Siemens Healthineers AG vs. QBE Insurance Group
Performance |
| Timeline |
| Siemens Healthineers |
| QBE Insurance Group |
Siemens Healthineers and QBE Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siemens Healthineers and QBE Insurance
The main advantage of trading using opposite Siemens Healthineers and QBE Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siemens Healthineers 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.| Siemens Healthineers vs. GBS Software AG | Siemens Healthineers vs. Magic Software Enterprises | Siemens Healthineers vs. ALBIS LEASING AG | Siemens Healthineers vs. GRENKELEASING Dusseldorf |
| QBE Insurance vs. CARSALESCOM | QBE Insurance vs. Aegean Airlines SA | QBE Insurance vs. Regal Hotels International | QBE Insurance vs. MELIA HOTELS |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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