Correlation Between Kinsale Capital and II VI

Can any of the company-specific risk be diversified away by investing in both Kinsale Capital and II VI 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 Kinsale Capital and II VI into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Kinsale Capital Group and II VI Incorporated, you can compare the effects of market volatilities on Kinsale Capital and II VI 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 Kinsale Capital with a short position of II VI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinsale Capital and II VI.

Diversification Opportunities for Kinsale Capital and II VI

0.0

Correlation Coefficient

Kinsale Capital  II VI

Pay attention - limited upside

The 3 months correlation between Kinsale and IIVI is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Kinsale Capital Group and II VI Incorporated in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on II VI and Kinsale Capital 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 Kinsale Capital Group are associated (or correlated) with II VI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of II VI has no effect on the direction of Kinsale Capital i.e., Kinsale Capital and II VI go up and down completely randomly.

Pair Corralation between Kinsale Capital and II VI

If you would invest  46,537  in Kinsale Capital Group on December 29, 2024 and sell it today you would earn a total of  2,138  from holding Kinsale Capital Group or generate 4.59% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Kinsale Capital Group  vs.  II VI Incorporated

Kinsale Capital Group

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Kinsale Capital Group are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent basic indicators, Kinsale Capital is not utilizing all of its potentials. The recent stock price mess, may contribute to short-term losses for the institutional investors.

II VI

Risk-Adjusted Performance

Very Weak

Over the last 90 days II VI Incorporated has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, II VI is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Kinsale Capital and II VI

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

The idea behind Kinsale Capital Group and II VI Incorporated 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 Stocks Directory module to find actively traded stocks across global markets.