Correlation Between Pinterest and Kemper
Can any of the company-specific risk be diversified away by investing in both Pinterest and Kemper 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 Pinterest and Kemper into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pinterest and Kemper, you can compare the effects of market volatilities on Pinterest and Kemper 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 Pinterest with a short position of Kemper. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pinterest and Kemper.
Diversification Opportunities for Pinterest and Kemper
Very good diversification
The 3 months correlation between Pinterest and Kemper is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Pinterest and Kemper in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kemper and Pinterest 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 Pinterest are associated (or correlated) with Kemper. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kemper has no effect on the direction of Pinterest i.e., Pinterest and Kemper go up and down completely randomly.
Pair Corralation between Pinterest and Kemper
Given the investment horizon of 90 days Pinterest is expected to under-perform the Kemper. In addition to that, Pinterest is 1.82 times more volatile than Kemper. It trades about -0.04 of its total potential returns per unit of risk. Kemper is currently generating about 0.25 per unit of volatility. If you would invest 6,098 in Kemper on August 30, 2024 and sell it today you would earn a total of 1,059 from holding Kemper or generate 17.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.73% |
| Values | Daily Returns |
Pinterest vs. Kemper
Performance |
| Timeline |
| Kemper |
Pinterest and Kemper Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pinterest and Kemper
The main advantage of trading using opposite Pinterest and Kemper positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pinterest position performs unexpectedly, Kemper 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 Kemper will offset losses from the drop in Kemper's long position.| Pinterest vs. Twilio Inc | Pinterest vs. Meta Platforms | Pinterest vs. Alphabet Inc Class C | Pinterest vs. Alphabet Inc Class A |
| Kemper vs. Selective Insurance Group | Kemper vs. Donegal Group B | Kemper vs. Argo Group International | Kemper vs. Global Indemnity PLC |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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