Correlation Between Kinsale Capital and Tuxis
Can any of the company-specific risk be diversified away by investing in both Kinsale Capital and Tuxis 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 Tuxis 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 Tuxis, you can compare the effects of market volatilities on Kinsale Capital and Tuxis 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 Tuxis. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinsale Capital and Tuxis.
Diversification Opportunities for Kinsale Capital and Tuxis
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kinsale and Tuxis is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Kinsale Capital Group and Tuxis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tuxis 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 Tuxis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tuxis has no effect on the direction of Kinsale Capital i.e., Kinsale Capital and Tuxis go up and down completely randomly.
Pair Corralation between Kinsale Capital and Tuxis
Given the investment horizon of 90 days Kinsale Capital Group is expected to generate 1.65 times more return on investment than Tuxis. However, Kinsale Capital is 1.65 times more volatile than Tuxis. It trades about 0.06 of its potential returns per unit of risk. Tuxis is currently generating about -0.12 per unit of risk. If you would invest 26,952 in Kinsale Capital Group on September 5, 2024 and sell it today you would earn a total of 23,043 from holding Kinsale Capital Group or generate 85.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 21.82% |
| Values | Daily Returns |
Kinsale Capital Group vs. Tuxis
Performance |
| Timeline |
| Kinsale Capital Group |
| Tuxis |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Kinsale Capital and Tuxis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinsale Capital and Tuxis
The main advantage of trading using opposite Kinsale Capital and Tuxis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinsale Capital position performs unexpectedly, Tuxis 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 Tuxis will offset losses from the drop in Tuxis' long position.| Kinsale Capital vs. Selective Insurance Group | Kinsale Capital vs. Horace Mann Educators | Kinsale Capital vs. Kemper | Kinsale Capital vs. ProAssurance |
| Tuxis vs. Bridgford Foods | Tuxis vs. United Fire Group | Tuxis vs. Kinsale Capital Group | Tuxis vs. Old Republic International |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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