Correlation Between Kinsale Capital and Evolution Gaming
Can any of the company-specific risk be diversified away by investing in both Kinsale Capital and Evolution Gaming 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 Evolution Gaming 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 Evolution Gaming Group, you can compare the effects of market volatilities on Kinsale Capital and Evolution Gaming 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 Evolution Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinsale Capital and Evolution Gaming.
Diversification Opportunities for Kinsale Capital and Evolution Gaming
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kinsale and Evolution is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Kinsale Capital Group and Evolution Gaming Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Evolution Gaming 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 Evolution Gaming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Evolution Gaming has no effect on the direction of Kinsale Capital i.e., Kinsale Capital and Evolution Gaming go up and down completely randomly.
Pair Corralation between Kinsale Capital and Evolution Gaming
Given the investment horizon of 90 days Kinsale Capital Group is expected to generate 1.3 times more return on investment than Evolution Gaming. However, Kinsale Capital is 1.3 times more volatile than Evolution Gaming Group. It trades about 0.08 of its potential returns per unit of risk. Evolution Gaming Group is currently generating about -0.03 per unit of risk. If you would invest 33,284 in Kinsale Capital Group on September 4, 2024 and sell it today you would earn a total of 16,711 from holding Kinsale Capital Group or generate 50.21% 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. Evolution Gaming Group
Performance |
| Timeline |
| Kinsale Capital Group |
| Evolution Gaming |
Kinsale Capital and Evolution Gaming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinsale Capital and Evolution Gaming
The main advantage of trading using opposite Kinsale Capital and Evolution Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinsale Capital position performs unexpectedly, Evolution Gaming 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 Evolution Gaming will offset losses from the drop in Evolution Gaming's long position.| Kinsale Capital vs. Selective Insurance Group | Kinsale Capital vs. Horace Mann Educators | Kinsale Capital vs. Kemper | Kinsale Capital vs. ProAssurance |
| Evolution Gaming vs. Galaxy Gaming | Evolution Gaming vs. Everi Holdings | Evolution Gaming vs. Intema Solutions | Evolution Gaming vs. 888 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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. | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |