Correlation Between Kinsale Capital and Walker Dunlop
Can any of the company-specific risk be diversified away by investing in both Kinsale Capital and Walker Dunlop 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 Walker Dunlop 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 Walker Dunlop, you can compare the effects of market volatilities on Kinsale Capital and Walker Dunlop 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 Walker Dunlop. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinsale Capital and Walker Dunlop.
Diversification Opportunities for Kinsale Capital and Walker Dunlop
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Kinsale and Walker is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Kinsale Capital Group and Walker Dunlop in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Walker Dunlop 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 Walker Dunlop. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Walker Dunlop has no effect on the direction of Kinsale Capital i.e., Kinsale Capital and Walker Dunlop go up and down completely randomly.
Pair Corralation between Kinsale Capital and Walker Dunlop
Given the investment horizon of 90 days Kinsale Capital Group is expected to generate 1.16 times more return on investment than Walker Dunlop. However, Kinsale Capital is 1.16 times more volatile than Walker Dunlop. It trades about 0.37 of its potential returns per unit of risk. Walker Dunlop is currently generating about 0.04 per unit of risk. If you would invest 43,827 in Kinsale Capital Group on August 28, 2024 and sell it today you would earn a total of 6,805 from holding Kinsale Capital Group or generate 15.53% 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. Walker Dunlop
Performance |
| Timeline |
| Kinsale Capital Group |
| Walker Dunlop |
Kinsale Capital and Walker Dunlop Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinsale Capital and Walker Dunlop
The main advantage of trading using opposite Kinsale Capital and Walker Dunlop positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinsale Capital position performs unexpectedly, Walker Dunlop 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 Walker Dunlop will offset losses from the drop in Walker Dunlop's long position.| Kinsale Capital vs. Selective Insurance Group | Kinsale Capital vs. Horace Mann Educators | Kinsale Capital vs. Kemper | Kinsale Capital vs. ProAssurance |
| Walker Dunlop vs. Mr Cooper Group | Walker Dunlop vs. Velocity Financial Llc | Walker Dunlop vs. Security National Financial | Walker Dunlop vs. Encore Capital Group |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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