Correlation Between Volkswagen and QBE Insurance
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By analyzing existing cross correlation between Volkswagen AG VZO and QBE Insurance Group, you can compare the effects of market volatilities on Volkswagen 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 Volkswagen with a short position of QBE Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Volkswagen and QBE Insurance.
Diversification Opportunities for Volkswagen and QBE Insurance
-0.87 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Volkswagen and QBE is -0.87. Overlapping area represents the amount of risk that can be diversified away by holding Volkswagen AG VZO 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 Volkswagen 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 Volkswagen AG VZO 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 Volkswagen i.e., Volkswagen and QBE Insurance go up and down completely randomly.
Pair Corralation between Volkswagen and QBE Insurance
Assuming the 90 days trading horizon Volkswagen AG VZO is expected to under-perform the QBE Insurance. In addition to that, Volkswagen is 1.08 times more volatile than QBE Insurance Group. It trades about -0.37 of its total potential returns per unit of risk. QBE Insurance Group is currently generating about 0.49 per unit of volatility. If you would invest 1,050 in QBE Insurance Group on August 29, 2024 and sell it today you would earn a total of 170.00 from holding QBE Insurance Group or generate 16.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Volkswagen AG VZO vs. QBE Insurance Group
Performance |
| Timeline |
| Volkswagen AG VZO |
| QBE Insurance Group |
Volkswagen and QBE Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Volkswagen and QBE Insurance
The main advantage of trading using opposite Volkswagen and QBE Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Volkswagen 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.| Volkswagen vs. MSAD INSURANCE | Volkswagen vs. Lion One Metals | Volkswagen vs. QBE Insurance Group | Volkswagen vs. Reinsurance Group of |
| QBE Insurance vs. Darden Restaurants | QBE Insurance vs. AIR PRODCHEMICALS | QBE Insurance vs. Japan Tobacco | QBE Insurance vs. Strategic Education |
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 Stocks Directory module to find actively traded stocks across global markets.
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