Correlation Between Alaska Air and Kinsale Capital
Can any of the company-specific risk be diversified away by investing in both Alaska Air 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 Alaska Air and Kinsale Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alaska Air Group and Kinsale Capital Group, you can compare the effects of market volatilities on Alaska Air 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 Alaska Air with a short position of Kinsale Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alaska Air and Kinsale Capital.
Diversification Opportunities for Alaska Air and Kinsale Capital
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Alaska and Kinsale is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Alaska Air Group 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 Alaska Air 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 Alaska Air Group 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 Alaska Air i.e., Alaska Air and Kinsale Capital go up and down completely randomly.
Pair Corralation between Alaska Air and Kinsale Capital
Considering the 90-day investment horizon Alaska Air Group is expected to generate 0.75 times more return on investment than Kinsale Capital. However, Alaska Air Group is 1.33 times less risky than Kinsale Capital. It trades about 0.1 of its potential returns per unit of risk. Kinsale Capital Group is currently generating about 0.06 per unit of risk. If you would invest 3,583 in Alaska Air Group on August 28, 2024 and sell it today you would earn a total of 1,761 from holding Alaska Air Group or generate 49.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Alaska Air Group vs. Kinsale Capital Group
Performance |
| Timeline |
| Alaska Air Group |
| Kinsale Capital Group |
Alaska Air and Kinsale Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alaska Air and Kinsale Capital
The main advantage of trading using opposite Alaska Air and Kinsale Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alaska Air 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.| Alaska Air vs. Delta Air Lines | Alaska Air vs. United Airlines Holdings | Alaska Air vs. American Airlines Group | Alaska Air vs. JetBlue Airways Corp |
| 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |