Correlation Between Kinsale Capital and Independence Holding
Can any of the company-specific risk be diversified away by investing in both Kinsale Capital and Independence Holding 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 Independence Holding 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 Independence Holding, you can compare the effects of market volatilities on Kinsale Capital and Independence Holding 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 Independence Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinsale Capital and Independence Holding.
Diversification Opportunities for Kinsale Capital and Independence Holding
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Kinsale and Independence is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Kinsale Capital Group and Independence Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Independence Holding 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 Independence Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Independence Holding has no effect on the direction of Kinsale Capital i.e., Kinsale Capital and Independence Holding go up and down completely randomly.
Pair Corralation between Kinsale Capital and Independence Holding
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 | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Kinsale Capital Group vs. Independence Holding
Performance |
| Timeline |
| Kinsale Capital Group |
| Independence Holding |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Kinsale Capital and Independence Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinsale Capital and Independence Holding
The main advantage of trading using opposite Kinsale Capital and Independence Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinsale Capital position performs unexpectedly, Independence Holding 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 Independence Holding will offset losses from the drop in Independence Holding'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 |
| Independence Holding vs. Glacier Bancorp | Independence Holding vs. BCB Bancorp | Independence Holding vs. Valens | Independence Holding vs. NETGEAR |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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