Correlation Between SLR Investment and QBE Insurance
Can any of the company-specific risk be diversified away by investing in both SLR Investment 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 SLR Investment and QBE Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SLR Investment Corp and QBE Insurance Group, you can compare the effects of market volatilities on SLR Investment 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 SLR Investment with a short position of QBE Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of SLR Investment and QBE Insurance.
Diversification Opportunities for SLR Investment and QBE Insurance
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between SLR and QBE is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding SLR Investment Corp 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 SLR Investment 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 SLR Investment Corp 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 SLR Investment i.e., SLR Investment and QBE Insurance go up and down completely randomly.
Pair Corralation between SLR Investment and QBE Insurance
Assuming the 90 days horizon SLR Investment is expected to generate 1.26 times less return on investment than QBE Insurance. But when comparing it to its historical volatility, SLR Investment Corp is 1.44 times less risky than QBE Insurance. It trades about 0.11 of its potential returns per unit of risk. QBE Insurance Group is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 818.00 in QBE Insurance Group on September 14, 2024 and sell it today you would earn a total of 342.00 from holding QBE Insurance Group or generate 41.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
SLR Investment Corp vs. QBE Insurance Group
Performance |
| Timeline |
| SLR Investment Corp |
| QBE Insurance Group |
SLR Investment and QBE Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SLR Investment and QBE Insurance
The main advantage of trading using opposite SLR Investment and QBE Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SLR Investment 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.| SLR Investment vs. QBE Insurance Group | SLR Investment vs. Selective Insurance Group | SLR Investment vs. Summit Materials | SLR Investment vs. REVO INSURANCE SPA |
| QBE Insurance vs. Insurance Australia Group | QBE Insurance vs. Superior Plus Corp | QBE Insurance vs. SIVERS SEMICONDUCTORS AB | QBE Insurance vs. CHINA HUARONG ENERHD 50 |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |