Correlation Between AuQ Gold and QBE Insurance
Can any of the company-specific risk be diversified away by investing in both AuQ Gold 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 AuQ Gold and QBE Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AuQ Gold Mining and QBE Insurance Group, you can compare the effects of market volatilities on AuQ Gold 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 AuQ Gold with a short position of QBE Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of AuQ Gold and QBE Insurance.
Diversification Opportunities for AuQ Gold and QBE Insurance
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between AuQ and QBE is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding AuQ Gold Mining 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 AuQ Gold 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 AuQ Gold Mining 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 AuQ Gold i.e., AuQ Gold and QBE Insurance go up and down completely randomly.
Pair Corralation between AuQ Gold and QBE Insurance
If you would invest 4.19 in AuQ Gold Mining on January 26, 2024 and sell it today you would earn a total of 0.00 from holding AuQ Gold Mining or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
AuQ Gold Mining vs. QBE Insurance Group
Performance |
Timeline |
AuQ Gold Mining |
QBE Insurance Group |
AuQ Gold and QBE Insurance Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with AuQ Gold and QBE Insurance
The main advantage of trading using opposite AuQ Gold and QBE Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AuQ Gold 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.AuQ Gold vs. Osisko Mining | AuQ Gold vs. Almadex Minerals | AuQ Gold vs. Galiano Gold | AuQ Gold vs. US Gold Corp |
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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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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