Correlation Between XMReality and Kinsale Capital
Can any of the company-specific risk be diversified away by investing in both XMReality 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 XMReality and Kinsale Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between XMReality AB and Kinsale Capital Group, you can compare the effects of market volatilities on XMReality 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 XMReality with a short position of Kinsale Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of XMReality and Kinsale Capital.
Diversification Opportunities for XMReality and Kinsale Capital
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between XMReality and Kinsale is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding XMReality AB 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 XMReality 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 XMReality AB 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 XMReality i.e., XMReality and Kinsale Capital go up and down completely randomly.
Pair Corralation between XMReality and Kinsale Capital
Assuming the 90 days horizon XMReality AB is expected to under-perform the Kinsale Capital. In addition to that, XMReality is 1.8 times more volatile than Kinsale Capital Group. It trades about -0.06 of its total potential returns per unit of risk. Kinsale Capital Group is currently generating about 0.06 per unit of volatility. If you would invest 33,099 in Kinsale Capital Group on September 24, 2024 and sell it today you would earn a total of 13,532 from holding Kinsale Capital Group or generate 40.88% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
XMReality AB vs. Kinsale Capital Group
Performance |
Timeline |
XMReality AB |
Kinsale Capital Group |
XMReality and Kinsale Capital Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with XMReality and Kinsale Capital
The main advantage of trading using opposite XMReality and Kinsale Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XMReality 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.XMReality vs. United Fire Group | XMReality vs. Palomar Holdings | XMReality vs. ICC Holdings | XMReality vs. Corporacion America Airports |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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