Correlation Between KIMCO and QBE Insurance
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By analyzing existing cross correlation between KIMCO RLTY P and QBE Insurance Group, you can compare the effects of market volatilities on KIMCO 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 KIMCO with a short position of QBE Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of KIMCO and QBE Insurance.
Diversification Opportunities for KIMCO and QBE Insurance
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between KIMCO and QBE is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding KIMCO RLTY 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 KIMCO 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 KIMCO RLTY 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 KIMCO i.e., KIMCO and QBE Insurance go up and down completely randomly.
Pair Corralation between KIMCO and QBE Insurance
Assuming the 90 days trading horizon KIMCO RLTY P is expected to under-perform the QBE Insurance. But the bond apears to be less risky and, when comparing its historical volatility, KIMCO RLTY P is 1.5 times less risky than QBE Insurance. The bond trades about -0.02 of its potential returns per unit of risk. The QBE Insurance Group is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,127 in QBE Insurance Group on December 4, 2024 and sell it today you would earn a total of 263.00 from holding QBE Insurance Group or generate 23.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 43.24% |
| Values | Daily Returns |
KIMCO RLTY P vs. QBE Insurance Group
Performance |
| Timeline |
| KIMCO RLTY P |
| QBE Insurance Group |
KIMCO and QBE Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KIMCO and QBE Insurance
The main advantage of trading using opposite KIMCO and QBE Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KIMCO 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.The idea behind KIMCO RLTY P and QBE Insurance Group 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.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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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