Correlation Between QBE Insurance and SEALSQ Corp

Can any of the company-specific risk be diversified away by investing in both QBE Insurance and SEALSQ Corp 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 QBE Insurance and SEALSQ Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between QBE Insurance Group and SEALSQ Corp, you can compare the effects of market volatilities on QBE Insurance and SEALSQ Corp 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 QBE Insurance with a short position of SEALSQ Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of QBE Insurance and SEALSQ Corp.

Diversification Opportunities for QBE Insurance and SEALSQ Corp

-0.47

Correlation Coefficient

QBE Insurance  SEALSQ Corp

Very good diversification

The 3 months correlation between QBE and SEALSQ is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding QBE Insurance Group and SEALSQ Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SEALSQ Corp and QBE Insurance 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 QBE Insurance Group are associated (or correlated) with SEALSQ Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SEALSQ Corp has no effect on the direction of QBE Insurance i.e., QBE Insurance and SEALSQ Corp go up and down completely randomly.

Pair Corralation between QBE Insurance and SEALSQ Corp

Assuming the 90 days horizon QBE Insurance Group is expected to generate 0.15 times more return on investment than SEALSQ Corp. However, QBE Insurance Group is 6.89 times less risky than SEALSQ Corp. It trades about 0.02 of its potential returns per unit of risk. SEALSQ Corp is currently generating about -0.15 per unit of risk. If you would invest  1,164  in QBE Insurance Group on March 16, 2024 and sell it today you would earn a total of  6.00  from holding QBE Insurance Group or generate 0.52% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

QBE Insurance Group  vs.  SEALSQ Corp

QBE Insurance Group

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in QBE Insurance Group are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable forward indicators, QBE Insurance is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

SEALSQ Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days SEALSQ Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's technical and fundamental indicators remain comparatively stable which may send shares a bit higher in July 2024. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with QBE Insurance and SEALSQ Corp

The main advantage of trading using opposite QBE Insurance and SEALSQ Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if QBE Insurance position performs unexpectedly, SEALSQ Corp 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 SEALSQ Corp will offset losses from the drop in SEALSQ Corp's long position.

The idea behind QBE Insurance Group and SEALSQ Corp 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.

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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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.