Correlation Between Kemper and Stewart Information
Can any of the company-specific risk be diversified away by investing in both Kemper and Stewart Information 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 Stewart Information into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kemper and Stewart Information Services, you can compare the effects of market volatilities on Kemper and Stewart Information 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 Stewart Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kemper and Stewart Information.
Diversification Opportunities for Kemper and Stewart Information
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kemper and Stewart is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Kemper and Stewart Information Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stewart Information 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 Stewart Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stewart Information has no effect on the direction of Kemper i.e., Kemper and Stewart Information go up and down completely randomly.
Pair Corralation between Kemper and Stewart Information
Given the investment horizon of 90 days Kemper is expected to generate 1.28 times less return on investment than Stewart Information. But when comparing it to its historical volatility, Kemper is 1.14 times less risky than Stewart Information. It trades about 0.21 of its potential returns per unit of risk. Stewart Information Services is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 6,239 in Stewart Information Services on November 9, 2024 and sell it today you would earn a total of 588.00 from holding Stewart Information Services or generate 9.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kemper vs. Stewart Information Services
Performance |
| Timeline |
| Kemper |
| Stewart Information |
Kemper and Stewart Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kemper and Stewart Information
The main advantage of trading using opposite Kemper and Stewart Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kemper position performs unexpectedly, Stewart Information 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 Stewart Information will offset losses from the drop in Stewart Information's long position.| Kemper vs. Selective Insurance Group | Kemper vs. Donegal Group B | Kemper vs. Argo Group International | Kemper vs. Global Indemnity PLC |
| Stewart Information vs. Selective Insurance Group | Stewart Information vs. Kemper | Stewart Information vs. Donegal Group B | Stewart Information 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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