Correlation Between FANDIFI TECHNOLOGY and QBE Insurance
Can any of the company-specific risk be diversified away by investing in both FANDIFI TECHNOLOGY 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 FANDIFI TECHNOLOGY and QBE Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FANDIFI TECHNOLOGY P and QBE Insurance Group, you can compare the effects of market volatilities on FANDIFI TECHNOLOGY 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 FANDIFI TECHNOLOGY with a short position of QBE Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of FANDIFI TECHNOLOGY and QBE Insurance.
Diversification Opportunities for FANDIFI TECHNOLOGY and QBE Insurance
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between FANDIFI and QBE is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding FANDIFI TECHNOLOGY P 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 FANDIFI TECHNOLOGY 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 FANDIFI TECHNOLOGY P 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 FANDIFI TECHNOLOGY i.e., FANDIFI TECHNOLOGY and QBE Insurance go up and down completely randomly.
Pair Corralation between FANDIFI TECHNOLOGY and QBE Insurance
If you would invest 1,190 in QBE Insurance Group on November 5, 2024 and sell it today you would earn a total of 60.00 from holding QBE Insurance Group or generate 5.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
FANDIFI TECHNOLOGY P vs. QBE Insurance Group
Performance |
| Timeline |
| FANDIFI TECHNOLOGY |
| QBE Insurance Group |
FANDIFI TECHNOLOGY and QBE Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FANDIFI TECHNOLOGY and QBE Insurance
The main advantage of trading using opposite FANDIFI TECHNOLOGY and QBE Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FANDIFI TECHNOLOGY 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.| FANDIFI TECHNOLOGY vs. Ribbon Communications | FANDIFI TECHNOLOGY vs. Neinor Homes SA | FANDIFI TECHNOLOGY vs. Entravision Communications | FANDIFI TECHNOLOGY vs. CENTURIA OFFICE REIT |
| QBE Insurance vs. MidCap Financial Investment | QBE Insurance vs. Gladstone Investment | QBE Insurance vs. New Residential Investment | QBE Insurance vs. Apollo Investment 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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