Correlation Between Kinsale Capital and Chiba Bank
Can any of the company-specific risk be diversified away by investing in both Kinsale Capital and Chiba Bank 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 Chiba Bank 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 Chiba Bank Ltd, you can compare the effects of market volatilities on Kinsale Capital and Chiba Bank 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 Chiba Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinsale Capital and Chiba Bank.
Diversification Opportunities for Kinsale Capital and Chiba Bank
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Kinsale and Chiba is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Kinsale Capital Group and Chiba Bank Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chiba Bank 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 Chiba Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chiba Bank has no effect on the direction of Kinsale Capital i.e., Kinsale Capital and Chiba Bank go up and down completely randomly.
Pair Corralation between Kinsale Capital and Chiba Bank
If you would invest 42,591 in Kinsale Capital Group on September 2, 2024 and sell it today you would earn a total of 8,253 from holding Kinsale Capital Group or generate 19.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kinsale Capital Group vs. Chiba Bank Ltd
Performance |
| Timeline |
| Kinsale Capital Group |
| Chiba Bank |
Kinsale Capital and Chiba Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinsale Capital and Chiba Bank
The main advantage of trading using opposite Kinsale Capital and Chiba Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinsale Capital position performs unexpectedly, Chiba Bank 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 Chiba Bank will offset losses from the drop in Chiba Bank's long position.| Kinsale Capital vs. Selective Insurance Group | Kinsale Capital vs. Horace Mann Educators | Kinsale Capital vs. Kemper | Kinsale Capital vs. ProAssurance |
| Chiba Bank vs. Piraeus Bank SA | Chiba Bank vs. Turkiye Garanti Bankasi | Chiba Bank vs. Uwharrie Capital 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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