Correlation Between Kinsale Capital and Acumen Pharmaceuticals
Can any of the company-specific risk be diversified away by investing in both Kinsale Capital and Acumen Pharmaceuticals 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 Kinsale Capital and Acumen Pharmaceuticals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kinsale Capital Group and Acumen Pharmaceuticals, you can compare the effects of market volatilities on Kinsale Capital and Acumen Pharmaceuticals 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 Kinsale Capital with a short position of Acumen Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinsale Capital and Acumen Pharmaceuticals.
Diversification Opportunities for Kinsale Capital and Acumen Pharmaceuticals
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Kinsale and Acumen is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Kinsale Capital Group and Acumen Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acumen Pharmaceuticals and Kinsale Capital 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 Kinsale Capital Group are associated (or correlated) with Acumen Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acumen Pharmaceuticals has no effect on the direction of Kinsale Capital i.e., Kinsale Capital and Acumen Pharmaceuticals go up and down completely randomly.
Pair Corralation between Kinsale Capital and Acumen Pharmaceuticals
Given the investment horizon of 90 days Kinsale Capital Group is expected to generate 0.54 times more return on investment than Acumen Pharmaceuticals. However, Kinsale Capital Group is 1.84 times less risky than Acumen Pharmaceuticals. It trades about 0.03 of its potential returns per unit of risk. Acumen Pharmaceuticals is currently generating about -0.02 per unit of risk. If you would invest 43,431 in Kinsale Capital Group on September 4, 2024 and sell it today you would earn a total of 6,496 from holding Kinsale Capital Group or generate 14.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kinsale Capital Group vs. Acumen Pharmaceuticals
Performance |
| Timeline |
| Kinsale Capital Group |
| Acumen Pharmaceuticals |
Kinsale Capital and Acumen Pharmaceuticals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinsale Capital and Acumen Pharmaceuticals
The main advantage of trading using opposite Kinsale Capital and Acumen Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinsale Capital position performs unexpectedly, Acumen Pharmaceuticals 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 Acumen Pharmaceuticals will offset losses from the drop in Acumen Pharmaceuticals' long position.| Kinsale Capital vs. Selective Insurance Group | Kinsale Capital vs. Horace Mann Educators | Kinsale Capital vs. Kemper | Kinsale Capital vs. ProAssurance |
| Acumen Pharmaceuticals vs. Candel Therapeutics | Acumen Pharmaceuticals vs. Cingulate Warrants | Acumen Pharmaceuticals vs. Unicycive Therapeutics | Acumen Pharmaceuticals vs. Cardio Diagnostics Holdings |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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