Correlation Between Kingsway Financial and SunCar Technology
Can any of the company-specific risk be diversified away by investing in both Kingsway Financial and SunCar Technology 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 Kingsway Financial and SunCar Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kingsway Financial Services and SunCar Technology Group, you can compare the effects of market volatilities on Kingsway Financial and SunCar Technology 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 Kingsway Financial with a short position of SunCar Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kingsway Financial and SunCar Technology.
Diversification Opportunities for Kingsway Financial and SunCar Technology
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kingsway and SunCar is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Kingsway Financial Services and SunCar Technology Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SunCar Technology and Kingsway Financial 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 Kingsway Financial Services are associated (or correlated) with SunCar Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SunCar Technology has no effect on the direction of Kingsway Financial i.e., Kingsway Financial and SunCar Technology go up and down completely randomly.
Pair Corralation between Kingsway Financial and SunCar Technology
Considering the 90-day investment horizon Kingsway Financial Services is expected to under-perform the SunCar Technology. But the stock apears to be less risky and, when comparing its historical volatility, Kingsway Financial Services is 1.87 times less risky than SunCar Technology. The stock trades about -0.08 of its potential returns per unit of risk. The SunCar Technology Group is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 1,037 in SunCar Technology Group on August 28, 2024 and sell it today you would lose (18.00) from holding SunCar Technology Group or give up 1.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kingsway Financial Services vs. SunCar Technology Group
Performance |
| Timeline |
| Kingsway Financial |
| SunCar Technology |
Kingsway Financial and SunCar Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kingsway Financial and SunCar Technology
The main advantage of trading using opposite Kingsway Financial and SunCar Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kingsway Financial position performs unexpectedly, SunCar Technology 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 SunCar Technology will offset losses from the drop in SunCar Technology's long position.| Kingsway Financial vs. CarGurus | Kingsway Financial vs. KAR Auction Services | Kingsway Financial vs. Driven Brands Holdings | Kingsway Financial vs. Group 1 Automotive |
| SunCar Technology vs. Ultrapar Participacoes SA | SunCar Technology vs. Companhia Siderurgica Nacional | SunCar Technology vs. Dawson Geophysical |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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