Correlation Between Kinsale Capital and ServiceNow
Can any of the company-specific risk be diversified away by investing in both Kinsale Capital and ServiceNow 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 ServiceNow 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 ServiceNow, you can compare the effects of market volatilities on Kinsale Capital and ServiceNow 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 ServiceNow. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinsale Capital and ServiceNow.
Diversification Opportunities for Kinsale Capital and ServiceNow
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kinsale and ServiceNow is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Kinsale Capital Group and ServiceNow in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ServiceNow 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 ServiceNow. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ServiceNow has no effect on the direction of Kinsale Capital i.e., Kinsale Capital and ServiceNow go up and down completely randomly.
Pair Corralation between Kinsale Capital and ServiceNow
Given the investment horizon of 90 days Kinsale Capital Group is expected to generate 0.93 times more return on investment than ServiceNow. However, Kinsale Capital Group is 1.07 times less risky than ServiceNow. It trades about 0.06 of its potential returns per unit of risk. ServiceNow is currently generating about 0.03 per unit of risk. If you would invest 38,833 in Kinsale Capital Group on January 14, 2025 and sell it today you would earn a total of 9,677 from holding Kinsale Capital Group or generate 24.92% 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. ServiceNow
Performance |
| Timeline |
| Kinsale Capital Group |
| ServiceNow |
Kinsale Capital and ServiceNow Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinsale Capital and ServiceNow
The main advantage of trading using opposite Kinsale Capital and ServiceNow positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinsale Capital position performs unexpectedly, ServiceNow 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 ServiceNow will offset losses from the drop in ServiceNow's long position.| Kinsale Capital vs. Selective Insurance Group | Kinsale Capital vs. Horace Mann Educators | Kinsale Capital vs. Kemper | Kinsale Capital vs. ProAssurance |
| ServiceNow vs. Autodesk | ServiceNow vs. Intuit Inc | ServiceNow vs. Zoom Video Communications | ServiceNow vs. Snowflake |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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