Correlation Between Kinsale Capital and Cardinal Health
Can any of the company-specific risk be diversified away by investing in both Kinsale Capital and Cardinal Health 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 Cardinal Health 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 Cardinal Health, you can compare the effects of market volatilities on Kinsale Capital and Cardinal Health 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 Cardinal Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinsale Capital and Cardinal Health.
Diversification Opportunities for Kinsale Capital and Cardinal Health
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kinsale and Cardinal is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Kinsale Capital Group and Cardinal Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cardinal Health 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 Cardinal Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cardinal Health has no effect on the direction of Kinsale Capital i.e., Kinsale Capital and Cardinal Health go up and down completely randomly.
Pair Corralation between Kinsale Capital and Cardinal Health
Given the investment horizon of 90 days Kinsale Capital Group is expected to generate 1.68 times more return on investment than Cardinal Health. However, Kinsale Capital is 1.68 times more volatile than Cardinal Health. It trades about 0.11 of its potential returns per unit of risk. Cardinal Health is currently generating about 0.13 per unit of risk. If you would invest 38,417 in Kinsale Capital Group on September 1, 2024 and sell it today you would earn a total of 12,427 from holding Kinsale Capital Group or generate 32.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kinsale Capital Group vs. Cardinal Health
Performance |
| Timeline |
| Kinsale Capital Group |
| Cardinal Health |
Kinsale Capital and Cardinal Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinsale Capital and Cardinal Health
The main advantage of trading using opposite Kinsale Capital and Cardinal Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinsale Capital position performs unexpectedly, Cardinal Health 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 Cardinal Health will offset losses from the drop in Cardinal Health's long position.| Kinsale Capital vs. Selective Insurance Group | Kinsale Capital vs. Aquagold International | Kinsale Capital vs. Thrivent High Yield | Kinsale Capital vs. Morningstar Unconstrained Allocation |
| Cardinal Health vs. Humana Inc | Cardinal Health vs. Cigna Corp | Cardinal Health vs. Elevance Health | Cardinal Health vs. Centene Corp |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| 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 | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |