Correlation Between Yuexiu Transport and Kinsale Capital
Can any of the company-specific risk be diversified away by investing in both Yuexiu Transport 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 Yuexiu Transport and Kinsale Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Yuexiu Transport Infrastructure and Kinsale Capital Group, you can compare the effects of market volatilities on Yuexiu Transport 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 Yuexiu Transport with a short position of Kinsale Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yuexiu Transport and Kinsale Capital.
Diversification Opportunities for Yuexiu Transport and Kinsale Capital
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Yuexiu and Kinsale is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Yuexiu Transport Infrastructur 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 Yuexiu Transport 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 Yuexiu Transport Infrastructure 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 Yuexiu Transport i.e., Yuexiu Transport and Kinsale Capital go up and down completely randomly.
Pair Corralation between Yuexiu Transport and Kinsale Capital
Assuming the 90 days horizon Yuexiu Transport Infrastructure is expected to generate 1.08 times more return on investment than Kinsale Capital. However, Yuexiu Transport is 1.08 times more volatile than Kinsale Capital Group. It trades about 0.1 of its potential returns per unit of risk. Kinsale Capital Group is currently generating about 0.08 per unit of risk. If you would invest 32.00 in Yuexiu Transport Infrastructure on September 2, 2024 and sell it today you would earn a total of 26.00 from holding Yuexiu Transport Infrastructure or generate 81.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yuexiu Transport Infrastructur vs. Kinsale Capital Group
Performance |
| Timeline |
| Yuexiu Transport Inf |
| Kinsale Capital Group |
Yuexiu Transport and Kinsale Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yuexiu Transport and Kinsale Capital
The main advantage of trading using opposite Yuexiu Transport and Kinsale Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yuexiu Transport 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.| Yuexiu Transport vs. Zhejiang Expressway Co | Yuexiu Transport vs. Jiangsu Expressway Co | Yuexiu Transport vs. Jiangsu Expressway | Yuexiu Transport vs. Verra Mobility 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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