Correlation Between Kingsway Financial and Rush Enterprises
Can any of the company-specific risk be diversified away by investing in both Kingsway Financial and Rush Enterprises 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 Rush Enterprises 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 Rush Enterprises A, you can compare the effects of market volatilities on Kingsway Financial and Rush Enterprises 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 Rush Enterprises. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kingsway Financial and Rush Enterprises.
Diversification Opportunities for Kingsway Financial and Rush Enterprises
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kingsway and Rush is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Kingsway Financial Services and Rush Enterprises A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rush Enterprises A 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 Rush Enterprises. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rush Enterprises A has no effect on the direction of Kingsway Financial i.e., Kingsway Financial and Rush Enterprises go up and down completely randomly.
Pair Corralation between Kingsway Financial and Rush Enterprises
If you would invest 5,515 in Rush Enterprises A on August 28, 2024 and sell it today you would earn a total of 772.00 from holding Rush Enterprises A or generate 14.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Kingsway Financial Services vs. Rush Enterprises A
Performance |
| Timeline |
| Kingsway Financial |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Rush Enterprises A |
Kingsway Financial and Rush Enterprises Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kingsway Financial and Rush Enterprises
The main advantage of trading using opposite Kingsway Financial and Rush Enterprises positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kingsway Financial position performs unexpectedly, Rush Enterprises 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 Rush Enterprises will offset losses from the drop in Rush Enterprises' long position.| Kingsway Financial vs. Cars Inc | Kingsway Financial vs. KAR Auction Services | Kingsway Financial vs. Rush Enterprises B | Kingsway Financial vs. Rush Enterprises A |
| Rush Enterprises vs. Kingsway Financial Services | Rush Enterprises vs. Group 1 Automotive | Rush Enterprises vs. KAR Auction Services | Rush Enterprises vs. Cars Inc |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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