Correlation Between First Acceptance and Kemper
Can any of the company-specific risk be diversified away by investing in both First Acceptance and Kemper 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 First Acceptance and Kemper into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First Acceptance Corp and Kemper, you can compare the effects of market volatilities on First Acceptance and Kemper 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 First Acceptance with a short position of Kemper. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Acceptance and Kemper.
Diversification Opportunities for First Acceptance and Kemper
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between First and Kemper is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding First Acceptance Corp and Kemper in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kemper and First Acceptance 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 First Acceptance Corp are associated (or correlated) with Kemper. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kemper has no effect on the direction of First Acceptance i.e., First Acceptance and Kemper go up and down completely randomly.
Pair Corralation between First Acceptance and Kemper
If you would invest 6,406 in Kemper on August 28, 2024 and sell it today you would earn a total of 789.00 from holding Kemper or generate 12.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
First Acceptance Corp vs. Kemper
Performance |
| Timeline |
| First Acceptance Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Kemper |
First Acceptance and Kemper Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Acceptance and Kemper
The main advantage of trading using opposite First Acceptance and Kemper positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Acceptance position performs unexpectedly, Kemper 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 Kemper will offset losses from the drop in Kemper's long position.| First Acceptance vs. Essent Group | First Acceptance vs. James River Group | First Acceptance vs. MGIC Investment Corp | First Acceptance vs. Employers Holdings |
| Kemper vs. Selective Insurance Group | Kemper vs. Donegal Group B | Kemper vs. Argo Group International | Kemper vs. Global Indemnity PLC |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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