Correlation Between Kingstone Companies and NI Holdings
Can any of the company-specific risk be diversified away by investing in both Kingstone Companies and NI Holdings 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 Kingstone Companies and NI Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kingstone Companies and NI Holdings, you can compare the effects of market volatilities on Kingstone Companies and NI Holdings 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 Kingstone Companies with a short position of NI Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kingstone Companies and NI Holdings.
Diversification Opportunities for Kingstone Companies and NI Holdings
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kingstone and NODK is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Kingstone Companies and NI Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NI Holdings and Kingstone Companies 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 Kingstone Companies are associated (or correlated) with NI Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NI Holdings has no effect on the direction of Kingstone Companies i.e., Kingstone Companies and NI Holdings go up and down completely randomly.
Pair Corralation between Kingstone Companies and NI Holdings
Given the investment horizon of 90 days Kingstone Companies is expected to generate 3.03 times more return on investment than NI Holdings. However, Kingstone Companies is 3.03 times more volatile than NI Holdings. It trades about 0.18 of its potential returns per unit of risk. NI Holdings is currently generating about 0.08 per unit of risk. If you would invest 195.00 in Kingstone Companies on August 25, 2024 and sell it today you would earn a total of 1,320 from holding Kingstone Companies or generate 676.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kingstone Companies vs. NI Holdings
Performance |
| Timeline |
| Kingstone Companies |
| NI Holdings |
Kingstone Companies and NI Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kingstone Companies and NI Holdings
The main advantage of trading using opposite Kingstone Companies and NI Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kingstone Companies position performs unexpectedly, NI Holdings 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 NI Holdings will offset losses from the drop in NI Holdings' long position.| Kingstone Companies vs. HCI Group | Kingstone Companies vs. Universal Insurance Holdings | Kingstone Companies vs. Horace Mann Educators | Kingstone Companies vs. Heritage Insurance Hldgs |
| NI Holdings vs. Horace Mann Educators | NI Holdings vs. Donegal Group A | NI Holdings vs. Global Indemnity PLC | NI Holdings vs. Selective Insurance Group |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |