Correlation Between Kinsale Capital and CP ALL
Can any of the company-specific risk be diversified away by investing in both Kinsale Capital and CP ALL 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 CP ALL 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 CP ALL Public, you can compare the effects of market volatilities on Kinsale Capital and CP ALL 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 CP ALL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinsale Capital and CP ALL.
Diversification Opportunities for Kinsale Capital and CP ALL
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Kinsale and CVPBF is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Kinsale Capital Group and CP ALL Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CP ALL Public 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 CP ALL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CP ALL Public has no effect on the direction of Kinsale Capital i.e., Kinsale Capital and CP ALL go up and down completely randomly.
Pair Corralation between Kinsale Capital and CP ALL
Given the investment horizon of 90 days Kinsale Capital Group is expected to generate 0.64 times more return on investment than CP ALL. However, Kinsale Capital Group is 1.55 times less risky than CP ALL. It trades about 0.06 of its potential returns per unit of risk. CP ALL Public is currently generating about 0.02 per unit of risk. If you would invest 27,564 in Kinsale Capital Group on September 12, 2024 and sell it today you would earn a total of 22,744 from holding Kinsale Capital Group or generate 82.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 66.06% |
| Values | Daily Returns |
Kinsale Capital Group vs. CP ALL Public
Performance |
| Timeline |
| Kinsale Capital Group |
| CP ALL Public |
Kinsale Capital and CP ALL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinsale Capital and CP ALL
The main advantage of trading using opposite Kinsale Capital and CP ALL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinsale Capital position performs unexpectedly, CP ALL 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 CP ALL will offset losses from the drop in CP ALL's long position.| Kinsale Capital vs. Aeye Inc | Kinsale Capital vs. Ep Emerging Markets | Kinsale Capital vs. LiCycle Holdings Corp | Kinsale Capital vs. SEI Investments |
| CP ALL vs. Asure Software | CP ALL vs. Red Branch Technologies | CP ALL vs. Estee Lauder Companies | CP ALL vs. Acm Research |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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