Correlation Between Kinsale Capital and Cistera Networks
Can any of the company-specific risk be diversified away by investing in both Kinsale Capital and Cistera Networks 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 Cistera Networks 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 Cistera Networks, you can compare the effects of market volatilities on Kinsale Capital and Cistera Networks 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 Cistera Networks. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinsale Capital and Cistera Networks.
Diversification Opportunities for Kinsale Capital and Cistera Networks
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Kinsale and Cistera is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Kinsale Capital Group and Cistera Networks in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cistera Networks 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 Cistera Networks. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cistera Networks has no effect on the direction of Kinsale Capital i.e., Kinsale Capital and Cistera Networks go up and down completely randomly.
Pair Corralation between Kinsale Capital and Cistera Networks
Given the investment horizon of 90 days Kinsale Capital is expected to generate 42.13 times less return on investment than Cistera Networks. But when comparing it to its historical volatility, Kinsale Capital Group is 30.63 times less risky than Cistera Networks. It trades about 0.05 of its potential returns per unit of risk. Cistera Networks is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 0.01 in Cistera Networks on September 1, 2024 and sell it today you would earn a total of 0.00 from holding Cistera Networks or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 91.94% |
| Values | Daily Returns |
Kinsale Capital Group vs. Cistera Networks
Performance |
| Timeline |
| Kinsale Capital Group |
| Cistera Networks |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Kinsale Capital and Cistera Networks Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinsale Capital and Cistera Networks
The main advantage of trading using opposite Kinsale Capital and Cistera Networks positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinsale Capital position performs unexpectedly, Cistera Networks 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 Cistera Networks will offset losses from the drop in Cistera Networks' 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 |
| Cistera Networks vs. Xponential Fitness | Cistera Networks vs. Amgen Inc | Cistera Networks vs. Aquestive Therapeutics | Cistera Networks vs. Q2 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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