Correlation Between SEI Investments and Kinsale Capital
Can any of the company-specific risk be diversified away by investing in both SEI Investments 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 SEI Investments and Kinsale Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SEI Investments and Kinsale Capital Group, you can compare the effects of market volatilities on SEI Investments 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 SEI Investments with a short position of Kinsale Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of SEI Investments and Kinsale Capital.
Diversification Opportunities for SEI Investments and Kinsale Capital
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SEI and Kinsale is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding SEI Investments 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 SEI Investments 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 SEI Investments 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 SEI Investments i.e., SEI Investments and Kinsale Capital go up and down completely randomly.
Pair Corralation between SEI Investments and Kinsale Capital
Given the investment horizon of 90 days SEI Investments is expected to generate 1.21 times less return on investment than Kinsale Capital. But when comparing it to its historical volatility, SEI Investments is 2.35 times less risky than Kinsale Capital. It trades about 0.08 of its potential returns per unit of risk. Kinsale Capital Group is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 38,398 in Kinsale Capital Group on September 12, 2024 and sell it today you would earn a total of 11,910 from holding Kinsale Capital Group or generate 31.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SEI Investments vs. Kinsale Capital Group
Performance |
| Timeline |
| SEI Investments |
| Kinsale Capital Group |
SEI Investments and Kinsale Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SEI Investments and Kinsale Capital
The main advantage of trading using opposite SEI Investments and Kinsale Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SEI Investments 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.| SEI Investments vs. Gladstone Investment | SEI Investments vs. Horizon Technology Finance | SEI Investments vs. Stellus Capital Investment | SEI Investments vs. Prospect Capital |
| Kinsale Capital vs. Aeye Inc | Kinsale Capital vs. Ep Emerging Markets | Kinsale Capital vs. LiCycle Holdings Corp | Kinsale Capital vs. SEI Investments |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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