Correlation Between Ep Emerging and Kinsale Capital
Can any of the company-specific risk be diversified away by investing in both Ep Emerging 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 Ep Emerging and Kinsale Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ep Emerging Markets and Kinsale Capital Group, you can compare the effects of market volatilities on Ep Emerging 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 Ep Emerging with a short position of Kinsale Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ep Emerging and Kinsale Capital.
Diversification Opportunities for Ep Emerging and Kinsale Capital
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between EPASX and Kinsale is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Ep Emerging Markets 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 Ep Emerging 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 Ep Emerging Markets 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 Ep Emerging i.e., Ep Emerging and Kinsale Capital go up and down completely randomly.
Pair Corralation between Ep Emerging and Kinsale Capital
Assuming the 90 days horizon Ep Emerging is expected to generate 7.01 times less return on investment than Kinsale Capital. But when comparing it to its historical volatility, Ep Emerging Markets is 3.38 times less risky than Kinsale Capital. It trades about 0.02 of its potential returns per unit of risk. Kinsale Capital Group is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 38,398 in Kinsale Capital Group on September 12, 2024 and sell it today you would earn a total of 11,910 from holding Kinsale Capital Group or generate 31.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ep Emerging Markets vs. Kinsale Capital Group
Performance |
| Timeline |
| Ep Emerging Markets |
| Kinsale Capital Group |
Ep Emerging and Kinsale Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ep Emerging and Kinsale Capital
The main advantage of trading using opposite Ep Emerging and Kinsale Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ep Emerging 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.| Ep Emerging vs. American Funds New | Ep Emerging vs. SCOR PK | Ep Emerging vs. Morningstar Unconstrained Allocation | Ep Emerging vs. Via Renewables |
| Kinsale Capital vs. Aeye Inc | Kinsale Capital vs. Ep Emerging Markets | Kinsale Capital vs. LiCycle Holdings Corp | Kinsale Capital vs. SEI Investments |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| 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 |