Correlation Between Kingsway Financial and SYN Prop

Can any of the company-specific risk be diversified away by investing in both Kingsway Financial and SYN Prop 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 Kingsway Financial and SYN Prop into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Kingsway Financial Services and SYN prop e, you can compare the effects of market volatilities on Kingsway Financial and SYN Prop 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 Kingsway Financial with a short position of SYN Prop. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kingsway Financial and SYN Prop.

Diversification Opportunities for Kingsway Financial and SYN Prop

-0.67

Correlation Coefficient

Kingsway Financial  SYN Prop

Excellent diversification

The 3 months correlation between Kingsway and SYN is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Kingsway Financial Services and SYN prop e in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SYN prop e and Kingsway Financial 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 Kingsway Financial Services are associated (or correlated) with SYN Prop. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SYN prop e has no effect on the direction of Kingsway Financial i.e., Kingsway Financial and SYN Prop go up and down completely randomly.

Pair Corralation between Kingsway Financial and SYN Prop

Considering the 90-day investment horizon Kingsway Financial is expected to generate 32.15 times less return on investment than SYN Prop. But when comparing it to its historical volatility, Kingsway Financial Services is 3.24 times less risky than SYN Prop. It trades about 0.01 of its potential returns per unit of risk. SYN prop e is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest  60.00  in SYN prop e on October 10, 2024 and sell it today you would earn a total of  466.00  from holding SYN prop e or generate 776.67% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	99.6%
Values	Daily Returns

Kingsway Financial Services  vs.  SYN prop e

Kingsway Financial

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Kingsway Financial Services has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable technical and fundamental indicators, Kingsway Financial is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

SYN prop e

Risk-Adjusted Performance

14 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in SYN prop e are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, SYN Prop showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Kingsway Financial and SYN Prop

The main advantage of trading using opposite Kingsway Financial and SYN Prop positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kingsway Financial position performs unexpectedly, SYN Prop 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 SYN Prop will offset losses from the drop in SYN Prop's long position.

The idea behind Kingsway Financial Services and SYN prop e pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Money Managers module to screen money managers from public funds and ETFs managed around the world.