Correlation Between Kinsale Capital and AlphaTime Acquisition
Can any of the company-specific risk be diversified away by investing in both Kinsale Capital and AlphaTime Acquisition 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 AlphaTime Acquisition 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 AlphaTime Acquisition Corp, you can compare the effects of market volatilities on Kinsale Capital and AlphaTime Acquisition 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 AlphaTime Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinsale Capital and AlphaTime Acquisition.
Diversification Opportunities for Kinsale Capital and AlphaTime Acquisition
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Kinsale and AlphaTime is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Kinsale Capital Group and AlphaTime Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AlphaTime Acquisition 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 AlphaTime Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AlphaTime Acquisition has no effect on the direction of Kinsale Capital i.e., Kinsale Capital and AlphaTime Acquisition go up and down completely randomly.
Pair Corralation between Kinsale Capital and AlphaTime Acquisition
Given the investment horizon of 90 days Kinsale Capital Group is expected to generate 0.27 times more return on investment than AlphaTime Acquisition. However, Kinsale Capital Group is 3.73 times less risky than AlphaTime Acquisition. It trades about 0.19 of its potential returns per unit of risk. AlphaTime Acquisition Corp is currently generating about -0.33 per unit of risk. If you would invest 47,182 in Kinsale Capital Group on September 13, 2024 and sell it today you would earn a total of 3,506 from holding Kinsale Capital Group or generate 7.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 22.73% |
| Values | Daily Returns |
Kinsale Capital Group vs. AlphaTime Acquisition Corp
Performance |
| Timeline |
| Kinsale Capital Group |
| AlphaTime Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
Kinsale Capital and AlphaTime Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinsale Capital and AlphaTime Acquisition
The main advantage of trading using opposite Kinsale Capital and AlphaTime Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinsale Capital position performs unexpectedly, AlphaTime Acquisition 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 AlphaTime Acquisition will offset losses from the drop in AlphaTime Acquisition's long position.| Kinsale Capital vs. Selective Insurance Group | Kinsale Capital vs. Horace Mann Educators | Kinsale Capital vs. Kemper | Kinsale Capital vs. ProAssurance |
| AlphaTime Acquisition vs. FitLife Brands, Common | AlphaTime Acquisition vs. Sligro Food Group | AlphaTime Acquisition vs. Alaska Air Group | AlphaTime Acquisition vs. Cebu Air ADR |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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