Correlation Between Kingstone Companies and Selective Insurance
Can any of the company-specific risk be diversified away by investing in both Kingstone Companies and Selective Insurance 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 Selective Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kingstone Companies and Selective Insurance Group, you can compare the effects of market volatilities on Kingstone Companies and Selective Insurance 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 Selective Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kingstone Companies and Selective Insurance.
Diversification Opportunities for Kingstone Companies and Selective Insurance
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kingstone and Selective is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Kingstone Companies and Selective Insurance Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Selective Insurance 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 Selective Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Selective Insurance has no effect on the direction of Kingstone Companies i.e., Kingstone Companies and Selective Insurance go up and down completely randomly.
Pair Corralation between Kingstone Companies and Selective Insurance
Given the investment horizon of 90 days Kingstone Companies is expected to generate 5.44 times more return on investment than Selective Insurance. However, Kingstone Companies is 5.44 times more volatile than Selective Insurance Group. It trades about 0.19 of its potential returns per unit of risk. Selective Insurance Group is currently generating about 0.04 per unit of risk. If you would invest 355.00 in Kingstone Companies on August 25, 2024 and sell it today you would earn a total of 1,160 from holding Kingstone Companies or generate 326.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kingstone Companies vs. Selective Insurance Group
Performance |
| Timeline |
| Kingstone Companies |
| Selective Insurance |
Kingstone Companies and Selective Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kingstone Companies and Selective Insurance
The main advantage of trading using opposite Kingstone Companies and Selective Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kingstone Companies position performs unexpectedly, Selective Insurance 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 Selective Insurance will offset losses from the drop in Selective Insurance's 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 |
| Selective Insurance vs. Aspen Insurance Holdings | Selective Insurance vs. Aspen Insurance Holdings | Selective Insurance vs. AmTrust Financial Services | Selective Insurance vs. Argo Group International |
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
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |