Correlation Between QBE Insurance and Gateway Real
Can any of the company-specific risk be diversified away by investing in both QBE Insurance and Gateway Real 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 Gateway Real 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 Gateway Real Estate, you can compare the effects of market volatilities on QBE Insurance and Gateway Real 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 Gateway Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of QBE Insurance and Gateway Real.
Diversification Opportunities for QBE Insurance and Gateway Real
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between QBE and Gateway is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding QBE Insurance Group and Gateway Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gateway Real Estate 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 Gateway Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gateway Real Estate has no effect on the direction of QBE Insurance i.e., QBE Insurance and Gateway Real go up and down completely randomly.
Pair Corralation between QBE Insurance and Gateway Real
Assuming the 90 days horizon QBE Insurance is expected to generate 21.13 times less return on investment than Gateway Real. But when comparing it to its historical volatility, QBE Insurance Group is 8.06 times less risky than Gateway Real. It trades about 0.04 of its potential returns per unit of risk. Gateway Real Estate is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 52.00 in Gateway Real Estate on April 24, 2025 and sell it today you would earn a total of 23.00 from holding Gateway Real Estate or generate 44.23% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
QBE Insurance Group vs. Gateway Real Estate
Performance |
Timeline |
QBE Insurance Group |
Gateway Real Estate |
QBE Insurance and Gateway Real Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with QBE Insurance and Gateway Real
The main advantage of trading using opposite QBE Insurance and Gateway Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if QBE Insurance position performs unexpectedly, Gateway Real 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 Gateway Real will offset losses from the drop in Gateway Real's long position.QBE Insurance vs. Singapore Telecommunications Limited | QBE Insurance vs. Rogers Communications | QBE Insurance vs. CITIC Telecom International | QBE Insurance vs. Chunghwa Telecom Co |
Gateway Real vs. PEPTONIC MEDICAL | Gateway Real vs. Japan Post Insurance | Gateway Real vs. VIENNA INSURANCE GR | Gateway Real vs. Peijia Medical Limited |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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