Correlation Between Ampleforth and Kinsale Capital
Can any of the company-specific risk be diversified away by investing in both Ampleforth 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 Ampleforth and Kinsale Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ampleforth and Kinsale Capital Group, you can compare the effects of market volatilities on Ampleforth 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 Ampleforth with a short position of Kinsale Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ampleforth and Kinsale Capital.
Diversification Opportunities for Ampleforth and Kinsale Capital
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Ampleforth and Kinsale is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Ampleforth 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 Ampleforth 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 Ampleforth 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 Ampleforth i.e., Ampleforth and Kinsale Capital go up and down completely randomly.
Pair Corralation between Ampleforth and Kinsale Capital
Assuming the 90 days trading horizon Ampleforth is expected to generate 2.19 times more return on investment than Kinsale Capital. However, Ampleforth is 2.19 times more volatile than Kinsale Capital Group. It trades about 0.03 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 126.00 in Ampleforth on September 3, 2024 and sell it today you would earn a total of 5.00 from holding Ampleforth or generate 3.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 60.4% |
| Values | Daily Returns |
Ampleforth vs. Kinsale Capital Group
Performance |
| Timeline |
| Ampleforth |
| Kinsale Capital Group |
Ampleforth and Kinsale Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ampleforth and Kinsale Capital
The main advantage of trading using opposite Ampleforth and Kinsale Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ampleforth 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.The idea behind Ampleforth and Kinsale Capital Group 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.| Kinsale Capital vs. Chubb | Kinsale Capital vs. SPACE | Kinsale Capital vs. Ampleforth | Kinsale Capital vs. ionet |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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