Correlation Between Pekin Life and Kinsale Capital
Can any of the company-specific risk be diversified away by investing in both Pekin Life and Kinsale Capital 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 Pekin Life and Kinsale Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pekin Life Insurance and Kinsale Capital Group, you can compare the effects of market volatilities on Pekin Life and Kinsale Capital 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 Pekin Life with a short position of Kinsale Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pekin Life and Kinsale Capital.
Diversification Opportunities for Pekin Life and Kinsale Capital
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Pekin and Kinsale is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Pekin Life Insurance and Kinsale Capital Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kinsale Capital Group and Pekin Life 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 Pekin Life Insurance are associated (or correlated) with Kinsale Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kinsale Capital Group has no effect on the direction of Pekin Life i.e., Pekin Life and Kinsale Capital go up and down completely randomly.
Pair Corralation between Pekin Life and Kinsale Capital
Given the investment horizon of 90 days Pekin Life Insurance is not expected to generate positive returns. However, Pekin Life Insurance is 31.32 times less risky than Kinsale Capital. It waists most of its returns potential to compensate for thr risk taken. Kinsale Capital is generating about -0.06 per unit of risk. 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 |
Pekin Life Insurance vs. Kinsale Capital Group
Performance |
| Timeline |
| Pekin Life Insurance |
| Kinsale Capital Group |
Pekin Life and Kinsale Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pekin Life and Kinsale Capital
The main advantage of trading using opposite Pekin Life and Kinsale Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pekin Life position performs unexpectedly, Kinsale Capital 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 Kinsale Capital will offset losses from the drop in Kinsale Capital's long position.| Pekin Life vs. FG Annuities Life | Pekin Life vs. MetLife Preferred Stock | Pekin Life vs. Brighthouse Financial | Pekin Life vs. MetLife Preferred Stock |
| Kinsale Capital vs. Selective Insurance Group | Kinsale Capital vs. Horace Mann Educators | Kinsale Capital vs. Kemper | Kinsale Capital vs. ProAssurance |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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