Correlation Between Assurant and Kinsale Capital
Can any of the company-specific risk be diversified away by investing in both Assurant and Kinsale Capital 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 Assurant and Kinsale Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Assurant and Kinsale Capital Group, you can compare the effects of market volatilities on Assurant and Kinsale Capital 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 Assurant with a short position of Kinsale Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Assurant and Kinsale Capital.
Diversification Opportunities for Assurant and Kinsale Capital
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Assurant and Kinsale is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Assurant and Kinsale Capital Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kinsale Capital Group and Assurant 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 Assurant are associated (or correlated) with Kinsale Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kinsale Capital Group has no effect on the direction of Assurant i.e., Assurant and Kinsale Capital go up and down completely randomly.
Pair Corralation between Assurant and Kinsale Capital
Considering the 90-day investment horizon Assurant is expected to generate 1.08 times less return on investment than Kinsale Capital. But when comparing it to its historical volatility, Assurant is 1.07 times less risky than Kinsale Capital. It trades about 0.44 of its potential returns per unit of risk. Kinsale Capital Group is currently generating about 0.44 of returns per unit of risk over similar time horizon. If you would invest 43,386 in Kinsale Capital Group on August 30, 2024 and sell it today you would earn a total of 8,159 from holding Kinsale Capital Group or generate 18.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Assurant vs. Kinsale Capital Group
Performance |
| Timeline |
| Assurant |
| Kinsale Capital Group |
Assurant and Kinsale Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Assurant and Kinsale Capital
The main advantage of trading using opposite Assurant and Kinsale Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Assurant position performs unexpectedly, Kinsale Capital 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 Kinsale Capital will offset losses from the drop in Kinsale Capital's long position.| Assurant vs. Assured Guaranty | Assurant vs. Ambac Financial Group | Assurant vs. AMERISAFE | Assurant vs. Enact Holdings |
| Kinsale Capital vs. Selective Insurance Group | Kinsale Capital vs. Horace Mann Educators | Kinsale Capital vs. Kemper | Kinsale Capital vs. ProAssurance |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |