Correlation Between Kinsale Capital and Gamer Pakistan
Can any of the company-specific risk be diversified away by investing in both Kinsale Capital and Gamer Pakistan 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 Gamer Pakistan 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 Gamer Pakistan Common, you can compare the effects of market volatilities on Kinsale Capital and Gamer Pakistan 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 Gamer Pakistan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinsale Capital and Gamer Pakistan.
Diversification Opportunities for Kinsale Capital and Gamer Pakistan
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Kinsale and Gamer is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Kinsale Capital Group and Gamer Pakistan Common in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gamer Pakistan Common 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 Gamer Pakistan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gamer Pakistan Common has no effect on the direction of Kinsale Capital i.e., Kinsale Capital and Gamer Pakistan go up and down completely randomly.
Pair Corralation between Kinsale Capital and Gamer Pakistan
Given the investment horizon of 90 days Kinsale Capital is expected to generate 3.15 times less return on investment than Gamer Pakistan. But when comparing it to its historical volatility, Kinsale Capital Group is 12.93 times less risky than Gamer Pakistan. It trades about 0.08 of its potential returns per unit of risk. Gamer Pakistan Common is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 53.00 in Gamer Pakistan Common on September 4, 2024 and sell it today you would lose (51.40) from holding Gamer Pakistan Common or give up 96.98% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 68.42% |
| Values | Daily Returns |
Kinsale Capital Group vs. Gamer Pakistan Common
Performance |
| Timeline |
| Kinsale Capital Group |
| Gamer Pakistan Common |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Kinsale Capital and Gamer Pakistan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinsale Capital and Gamer Pakistan
The main advantage of trading using opposite Kinsale Capital and Gamer Pakistan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinsale Capital position performs unexpectedly, Gamer Pakistan 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 Gamer Pakistan will offset losses from the drop in Gamer Pakistan's long position.| Kinsale Capital vs. Selective Insurance Group | Kinsale Capital vs. Horace Mann Educators | Kinsale Capital vs. Kemper | Kinsale Capital vs. ProAssurance |
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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 CEOs Directory module to screen CEOs from public companies around the world.
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