Correlation Between Kinsale Capital and Pekin Life
Can any of the company-specific risk be diversified away by investing in both Kinsale Capital and Pekin Life 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 Pekin Life 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 Pekin Life Insurance, you can compare the effects of market volatilities on Kinsale Capital and Pekin Life 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 Pekin Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinsale Capital and Pekin Life.
Diversification Opportunities for Kinsale Capital and Pekin Life
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Kinsale and Pekin is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Kinsale Capital Group and Pekin Life Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pekin Life Insurance 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 Pekin Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pekin Life Insurance has no effect on the direction of Kinsale Capital i.e., Kinsale Capital and Pekin Life go up and down completely randomly.
Pair Corralation between Kinsale Capital and Pekin Life
If you would invest 1,175 in Pekin Life Insurance on November 27, 2024 and sell it today you would earn a total of 0.00 from holding Pekin Life Insurance or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kinsale Capital Group vs. Pekin Life Insurance
Performance |
| Timeline |
| Kinsale Capital Group |
| Pekin Life Insurance |
Kinsale Capital and Pekin Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinsale Capital and Pekin Life
The main advantage of trading using opposite Kinsale Capital and Pekin Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinsale Capital position performs unexpectedly, Pekin Life 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 Pekin Life will offset losses from the drop in Pekin Life's long position.| Kinsale Capital vs. Selective Insurance Group | Kinsale Capital vs. Horace Mann Educators | Kinsale Capital vs. Kemper | Kinsale Capital vs. ProAssurance |
| Pekin Life vs. FG Annuities Life | Pekin Life vs. MetLife Preferred Stock | Pekin Life vs. Brighthouse Financial | Pekin Life vs. MetLife Preferred Stock |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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