Correlation Between Kinsale Capital and Cartier Iron
Can any of the company-specific risk be diversified away by investing in both Kinsale Capital and Cartier Iron 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 Cartier Iron 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 Cartier Iron Corp, you can compare the effects of market volatilities on Kinsale Capital and Cartier Iron 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 Cartier Iron. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinsale Capital and Cartier Iron.
Diversification Opportunities for Kinsale Capital and Cartier Iron
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Kinsale and Cartier is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Kinsale Capital Group and Cartier Iron Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cartier Iron Corp 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 Cartier Iron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cartier Iron Corp has no effect on the direction of Kinsale Capital i.e., Kinsale Capital and Cartier Iron go up and down completely randomly.
Pair Corralation between Kinsale Capital and Cartier Iron
Given the investment horizon of 90 days Kinsale Capital is expected to generate 1.2 times less return on investment than Cartier Iron. But when comparing it to its historical volatility, Kinsale Capital Group is 6.33 times less risky than Cartier Iron. It trades about 0.43 of its potential returns per unit of risk. Cartier Iron Corp is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 5.00 in Cartier Iron Corp on September 4, 2024 and sell it today you would earn a total of 0.50 from holding Cartier Iron Corp or generate 10.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Kinsale Capital Group vs. Cartier Iron Corp
Performance |
| Timeline |
| Kinsale Capital Group |
| Cartier Iron Corp |
Kinsale Capital and Cartier Iron Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinsale Capital and Cartier Iron
The main advantage of trading using opposite Kinsale Capital and Cartier Iron positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinsale Capital position performs unexpectedly, Cartier Iron 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 Cartier Iron will offset losses from the drop in Cartier Iron's long position.| Kinsale Capital vs. Selective Insurance Group | Kinsale Capital vs. Horace Mann Educators | Kinsale Capital vs. Kemper | Kinsale Capital vs. ProAssurance |
| Cartier Iron vs. Citizens | Cartier Iron vs. Sun Life Financial | Cartier Iron vs. Pekin Life Insurance | Cartier Iron vs. Kinsale Capital Group |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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