Correlation Between Kinsale Capital and Conifer Holding
Can any of the company-specific risk be diversified away by investing in both Kinsale Capital and Conifer Holding 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 Conifer Holding 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 Conifer Holding, you can compare the effects of market volatilities on Kinsale Capital and Conifer Holding 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 Conifer Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinsale Capital and Conifer Holding.
Diversification Opportunities for Kinsale Capital and Conifer Holding
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kinsale and Conifer is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Kinsale Capital Group and Conifer Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Conifer Holding 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 Conifer Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Conifer Holding has no effect on the direction of Kinsale Capital i.e., Kinsale Capital and Conifer Holding go up and down completely randomly.
Pair Corralation between Kinsale Capital and Conifer Holding
Given the investment horizon of 90 days Kinsale Capital Group is expected to generate 0.59 times more return on investment than Conifer Holding. However, Kinsale Capital Group is 1.68 times less risky than Conifer Holding. It trades about 0.4 of its potential returns per unit of risk. Conifer Holding is currently generating about -0.06 per unit of risk. If you would invest 43,827 in Kinsale Capital Group on August 29, 2024 and sell it today you would earn a total of 7,377 from holding Kinsale Capital Group or generate 16.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kinsale Capital Group vs. Conifer Holding
Performance |
| Timeline |
| Kinsale Capital Group |
| Conifer Holding |
Kinsale Capital and Conifer Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinsale Capital and Conifer Holding
The main advantage of trading using opposite Kinsale Capital and Conifer Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinsale Capital position performs unexpectedly, Conifer Holding 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 Conifer Holding will offset losses from the drop in Conifer Holding's long position.| Kinsale Capital vs. Selective Insurance Group | Kinsale Capital vs. Horace Mann Educators | Kinsale Capital vs. Kemper | Kinsale Capital vs. ProAssurance |
| Conifer Holding vs. Wilhelmina | Conifer Holding vs. Unico American | Conifer Holding vs. Creative Media Community | Conifer Holding vs. Kingstone Companies |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |