Correlation Between X Fab and QBE Insurance
Can any of the company-specific risk be diversified away by investing in both X Fab 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 X Fab and QBE Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between X Fab Silicon and QBE Insurance Group, you can compare the effects of market volatilities on X Fab 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 X Fab with a short position of QBE Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of X Fab and QBE Insurance.
Diversification Opportunities for X Fab and QBE Insurance
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between XFB and QBE is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding X Fab Silicon 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 X Fab 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 X Fab Silicon 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 X Fab i.e., X Fab and QBE Insurance go up and down completely randomly.
Pair Corralation between X Fab and QBE Insurance
Assuming the 90 days horizon X Fab is expected to generate 29.88 times less return on investment than QBE Insurance. In addition to that, X Fab is 1.67 times more volatile than QBE Insurance Group. It trades about 0.01 of its total potential returns per unit of risk. QBE Insurance Group is currently generating about 0.59 per unit of volatility. If you would invest 1,020 in QBE Insurance Group on September 4, 2024 and sell it today you would earn a total of 200.00 from holding QBE Insurance Group or generate 19.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
X Fab Silicon vs. QBE Insurance Group
Performance |
| Timeline |
| X Fab Silicon |
| QBE Insurance Group |
X Fab and QBE Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with X Fab and QBE Insurance
The main advantage of trading using opposite X Fab and QBE Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if X Fab 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.| X Fab vs. QBE Insurance Group | X Fab vs. Insurance Australia Group | X Fab vs. Goosehead Insurance | X Fab vs. Reinsurance Group of |
| QBE Insurance vs. Hitachi Construction Machinery | QBE Insurance vs. INDOFOOD AGRI RES | QBE Insurance vs. Lery Seafood Group | QBE Insurance vs. HF FOODS GRP |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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