Correlation Between Kemper and Markel
Can any of the company-specific risk be diversified away by investing in both Kemper and Markel 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 Kemper and Markel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kemper and Markel, you can compare the effects of market volatilities on Kemper and Markel 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 Kemper with a short position of Markel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kemper and Markel.
Diversification Opportunities for Kemper and Markel
Poor diversification
The 3 months correlation between Kemper and Markel is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Kemper and Markel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Markel and Kemper 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 Kemper are associated (or correlated) with Markel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Markel has no effect on the direction of Kemper i.e., Kemper and Markel go up and down completely randomly.
Pair Corralation between Kemper and Markel
Given the investment horizon of 90 days Kemper is expected to under-perform the Markel. In addition to that, Kemper is 1.07 times more volatile than Markel. It trades about -0.06 of its total potential returns per unit of risk. Markel is currently generating about 0.03 per unit of volatility. If you would invest 172,100 in Markel on January 14, 2025 and sell it today you would earn a total of 5,042 from holding Markel or generate 2.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kemper vs. Markel
Performance |
| Timeline |
| Kemper |
| Markel |
Kemper and Markel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kemper and Markel
The main advantage of trading using opposite Kemper and Markel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kemper position performs unexpectedly, Markel 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 Markel will offset losses from the drop in Markel's long position.| Kemper vs. Selective Insurance Group | Kemper vs. Donegal Group B | Kemper vs. Argo Group International | Kemper vs. Global Indemnity PLC |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |