Correlation Between Tokio Marine and Kingstone Companies
Can any of the company-specific risk be diversified away by investing in both Tokio Marine and Kingstone Companies 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 Tokio Marine and Kingstone Companies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tokio Marine Holdings and Kingstone Companies, you can compare the effects of market volatilities on Tokio Marine and Kingstone Companies 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 Tokio Marine with a short position of Kingstone Companies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tokio Marine and Kingstone Companies.
Diversification Opportunities for Tokio Marine and Kingstone Companies
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Tokio and Kingstone is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Tokio Marine Holdings and Kingstone Companies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kingstone Companies and Tokio Marine 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 Tokio Marine Holdings are associated (or correlated) with Kingstone Companies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kingstone Companies has no effect on the direction of Tokio Marine i.e., Tokio Marine and Kingstone Companies go up and down completely randomly.
Pair Corralation between Tokio Marine and Kingstone Companies
If you would invest 2,267 in Tokio Marine Holdings on October 20, 2024 and sell it today you would earn a total of 0.00 from holding Tokio Marine Holdings or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 5.0% |
| Values | Daily Returns |
Tokio Marine Holdings vs. Kingstone Companies
Performance |
| Timeline |
| Tokio Marine Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Kingstone Companies |
Tokio Marine and Kingstone Companies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tokio Marine and Kingstone Companies
The main advantage of trading using opposite Tokio Marine and Kingstone Companies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tokio Marine position performs unexpectedly, Kingstone Companies 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 Kingstone Companies will offset losses from the drop in Kingstone Companies' long position.| Tokio Marine vs. American Financial Group | Tokio Marine vs. The Allstate | Tokio Marine vs. Aspen Insurance Holdings | Tokio Marine vs. AmTrust Financial Services |
| Kingstone Companies vs. HCI Group | Kingstone Companies vs. Universal Insurance Holdings | Kingstone Companies vs. Horace Mann Educators | Kingstone Companies vs. Heritage Insurance Hldgs |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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