Correlation Between SPACE and Kinsale Capital
Can any of the company-specific risk be diversified away by investing in both SPACE 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 SPACE and Kinsale Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SPACE and Kinsale Capital Group, you can compare the effects of market volatilities on SPACE 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 SPACE with a short position of Kinsale Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPACE and Kinsale Capital.
Diversification Opportunities for SPACE and Kinsale Capital
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SPACE and Kinsale is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding SPACE 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 SPACE 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 SPACE 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 SPACE i.e., SPACE and Kinsale Capital go up and down completely randomly.
Pair Corralation between SPACE and Kinsale Capital
Assuming the 90 days horizon SPACE is expected to generate 71.19 times more return on investment than Kinsale Capital. However, SPACE is 71.19 times more volatile than Kinsale Capital Group. It trades about 0.18 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 0.00 in SPACE on September 3, 2024 and sell it today you would earn a total of 59.00 from holding SPACE or generate 9.223372036854776E16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 61.82% |
| Values | Daily Returns |
SPACE vs. Kinsale Capital Group
Performance |
| Timeline |
| SPACE |
| Kinsale Capital Group |
SPACE and Kinsale Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPACE and Kinsale Capital
The main advantage of trading using opposite SPACE and Kinsale Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPACE 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 SPACE 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |