Kinsale Capital Group Stock Volatility
| KNSL Stock | USD 470.04 11.02 2.40% |
As of now, Kinsale Stock is very steady. Kinsale Capital Group has Sharpe Ratio of close to zero, which conveys that the firm had a close to zero % return per unit of risk over the last 3 months. We have found twenty-four technical indicators for Kinsale Capital, which you can use to evaluate the volatility of the firm. Please verify Kinsale Capital's Mean Deviation of 1.39, risk adjusted performance of (0.03), and Standard Deviation of 2.06 to check out if the risk estimate we provide is consistent with the expected return of 0.018%. Key indicators related to Kinsale Capital's volatility include:
90 Days Market Risk | Chance Of Distress | 90 Days Economic Sensitivity |
Kinsale Capital Stock volatility depicts how high the prices fluctuate around the mean (or its average) price. In other words, it is a statistical measure of the distribution of Kinsale daily returns, and it is calculated using variance and standard deviation. We also use Kinsale's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Kinsale Capital volatility.
Kinsale |
ESG Sustainability
While most ESG disclosures are voluntary, Kinsale Capital's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Kinsale Capital's managers and investors.Environmental | Governance | Social |
Downward market volatility can be a perfect environment for investors who play the long game. Here, they may decide to buy additional stocks of Kinsale Capital at lower prices. For example, an investor can purchase Kinsale stock that has halved in price over a short period. This will lower their average cost per share, thereby improving the overall portfolio performance when market normalizes.
Kinsale Capital Market Sensitivity And Downside Risk
Kinsale Capital's beta coefficient measures the volatility of Kinsale stock compared to the systematic risk of the entire market represented by your selected benchmark. In mathematical terms, beta represents the slope of the line through a regression of data points where each of these points represents Kinsale stock's returns against your selected market. In other words, Kinsale Capital's beta of 0.65 provides an investor with an approximation of how much risk Kinsale Capital stock can potentially add to one of your existing portfolios. Kinsale Capital Group exhibits very low volatility with skewness of -0.67 and kurtosis of 3.56. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Kinsale Capital's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Kinsale Capital's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.
3 Months Beta |Analyze Kinsale Capital Group Demand TrendCheck current 90 days Kinsale Capital correlation with market (Dow Jones Industrial)Kinsale Beta |
Kinsale standard deviation measures the daily dispersion of prices over your selected time horizon relative to its mean. A typical volatile entity has a high standard deviation, while the deviation of a stable instrument is usually low. As a downside, the standard deviation calculates all uncertainty as risk, even when it is in your favor, such as above-average returns.
Standard Deviation | 2.03 |
It is essential to understand the difference between upside risk (as represented by Kinsale Capital's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Kinsale Capital's daily returns or price. Since the actual investment returns on holding a position in kinsale stock tend to have a non-normal distribution, there will be different probabilities for losses than for gains. The likelihood of losses is reflected in the downside risk of an investment in Kinsale Capital.
Using Kinsale Put Option to Manage Risk
Put options written on Kinsale Capital grant holders of the option the right to sell a specified amount of Kinsale Capital at a specified price within a specified time frame. The put buyer has a limited loss and, while not fully unlimited gains, as the price of Kinsale Stock cannot fall below zero, the put buyer does gain as the price drops. So, one way investors can hedge Kinsale Capital's position is by buying a put option against it. The put option used this way is usually referred to as insurance. If an undesired outcome occurs and loss on holding Kinsale Capital will be realized, the loss incurred will be offset by the profits made with the option trade.
Kinsale Capital's PUT expiring on 2025-05-16
Profit |
| Kinsale Capital Price At Expiration |
Current Kinsale Capital Insurance Chain
| Delta | Gamma | Open Int | Expiration | Current Spread | Last Price | |||
Put | KNSL250516P00450000 | -0.346267 | 0.005177 | 1 | 2025-05-16 | 15.3 - 20.8 | 0.0 | View |
Put | KNSL250516P00500000 | -0.635166 | 0.005768 | 1 | 2025-05-16 | 39.9 - 46.3 | 0.0 | View |
Kinsale Capital Group Stock Volatility Analysis
Volatility refers to the frequency at which Kinsale Capital stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Kinsale Capital's price changes. Investors will then calculate the volatility of Kinsale Capital's stock to predict their future moves. A stock that has erratic price changes quickly hits new highs, and lows are considered highly volatile. A stock with relatively stable price changes has low volatility. A highly volatile stock is riskier, but the risk cuts both ways. Investing in highly volatile security can either be highly successful, or you may experience significant failure. There are two main types of Kinsale Capital's volatility:
Historical Volatility
This type of stock volatility measures Kinsale Capital's fluctuations based on previous trends. It's commonly used to predict Kinsale Capital's future behavior based on its past. However, it cannot conclusively determine the future direction of the stock.Implied Volatility
This type of volatility provides a positive outlook on future price fluctuations for Kinsale Capital's current market price. This means that the stock will return to its initially predicted market price. This type of volatility can be derived from derivative instruments written on Kinsale Capital's to be redeemed at a future date.Transformation |
The output start index for this execution was zero with a total number of output elements of sixty-one. Kinsale Capital Group Average Price is the average of the sum of open, high, low and close daily prices of a bar. It can be used to smooth an indicator that normally takes just the closing price as input.
Kinsale Capital Projected Return Density Against Market
Given the investment horizon of 90 days Kinsale Capital has a beta of 0.6529 . This indicates as returns on the market go up, Kinsale Capital average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Kinsale Capital Group will be expected to be much smaller as well.Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Kinsale Capital or Insurance sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Kinsale Capital's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Kinsale stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
Kinsale Capital Group has a negative alpha, implying that the risk taken by holding this instrument is not justified. The company is significantly underperforming the Dow Jones Industrial. Predicted Return Density |
| Returns |
What Drives a Kinsale Capital Price Volatility?
Several factors can influence a stock's market volatility:Industry
Specific events can influence volatility within a particular industry. For instance, a significant weather upheaval in a crucial oil-production site may cause oil prices to increase in the oil sector. The direct result will be the rise in the stock price of oil distribution companies. Similarly, any government regulation in a specific industry could negatively influence stock prices due to increased regulations on compliance that may impact the company's future earnings and growth.Political and Economic environment
When governments make significant decisions regarding trade agreements, policies, and legislation regarding specific industries, they will influence stock prices. Everything from speeches to elections may influence investors, who can directly influence the stock prices in any particular industry. The prevailing economic situation also plays a significant role in stock prices. When the economy is doing well, investors will have a positive reaction and hence, better stock prices and vice versa.The Company's Performance
Sometimes volatility will only affect an individual company. For example, a revolutionary product launch or strong earnings report may attract many investors to purchase the company. This positive attention will raise the company's stock price. In contrast, product recalls and data breaches may negatively influence a company's stock prices.Kinsale Capital Stock Risk Measures
Given the investment horizon of 90 days the coefficient of variation of Kinsale Capital is 11295.8. The daily returns are distributed with a variance of 4.14 and standard deviation of 2.03. The mean deviation of Kinsale Capital Group is currently at 1.36. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.89
α | Alpha over Dow Jones | -0.06 | |
β | Beta against Dow Jones | 0.65 | |
σ | Overall volatility | 2.03 | |
Ir | Information ratio | -0.02 |
Kinsale Capital Stock Return Volatility
Kinsale Capital historical daily return volatility represents how much of Kinsale Capital stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company inherits 2.0349% risk (volatility on return distribution) over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.8357% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Kinsale Capital Volatility
Volatility is a rate at which the price of Kinsale Capital or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of Kinsale Capital may increase or decrease. In other words, similar to Kinsale's beta indicator, it measures the risk of Kinsale Capital and helps estimate the fluctuations that may happen in a short period of time. So if prices of Kinsale Capital fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility.
Please read more on our technical analysis page.| Last Reported | Projected for Next Year | ||
| Market Cap | 6.9 B | 7.3 B |
Kinsale Capital's stock volatility refers to the amount of uncertainty or risk involved with the size of changes in its stock's price. It is a statistical measure of the dispersion of returns on Kinsale Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Kinsale Capital's price varies over time.
3 ways to utilize Kinsale Capital's volatility to invest better
Higher Kinsale Capital's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Kinsale Capital Group stock is relatively stable. Investors and traders use stock volatility as an indicator of risk and potential reward, as stocks with higher volatility can offer the potential for more significant returns but also come with a greater risk of losses. Kinsale Capital Group stock volatility can provide helpful information for making investment decisions in the following ways:- Measuring Risk: Volatility can be used as a measure of risk, which can help you determine the potential fluctuations in the value of Kinsale Capital Group investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Kinsale Capital's stock can indicate that there is potential for significant price movements, either up or down, which could present investment opportunities.
- Diversification: Understanding how the volatility of Kinsale Capital's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Kinsale Capital Investment Opportunity
Kinsale Capital Group has a volatility of 2.03 and is 2.42 times more volatile than Dow Jones Industrial. Compared to the overall equity markets, volatility of historical daily returns of Kinsale Capital Group is lower than 18 percent of all global equities and portfolios over the last 90 days. You can use Kinsale Capital Group to enhance the returns of your portfolios. The stock experiences an unexpected upward trend. Watch out for market signals. Check odds of Kinsale Capital to be traded at $564.05 in 90 days.Modest diversification
The correlation between Kinsale Capital Group and DJI is 0.28 (i.e., Modest diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Kinsale Capital Group and DJI in the same portfolio, assuming nothing else is changed.
Kinsale Capital Additional Risk Indicators
The analysis of Kinsale Capital's secondary risk indicators is one of the essential steps in making a buy or sell decision. The process involves identifying the amount of risk involved in Kinsale Capital's investment and either accepting that risk or mitigating it. Along with some common measures of Kinsale Capital stock's risk such as standard deviation, beta, or value at risk, we also provide a set of secondary indicators that can assist in the individual investment decision or help in hedging the risk of your existing portfolios.
| Risk Adjusted Performance | (0.03) | |||
| Market Risk Adjusted Performance | (0.15) | |||
| Mean Deviation | 1.39 | |||
| Coefficient Of Variation | (2,239) | |||
| Standard Deviation | 2.06 | |||
| Variance | 4.25 | |||
| Information Ratio | (0.02) |
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential stocks, we recommend comparing similar stocks with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.
Kinsale Capital Suggested Diversification Pairs
Pair trading is one of the very effective strategies used by professional day traders and hedge funds capitalizing on short-time and mid-term market inefficiencies. The approach is based on the fact that the ratio of prices of two correlating shares is long-term stable and oscillates around the average value. If the correlation ratio comes outside the common area, you can speculate with a high success rate that the ratio will return to the mean value and collect a profit.
The effect of pair diversification on risk is to reduce it, but we should note this doesn't apply to all risk types. When we trade pairs against Kinsale Capital as a counterpart, there is always some inherent risk that will never be diversified away no matter what. This volatility limits the effect of tactical diversification using pair trading. Kinsale Capital's systematic risk is the inherent uncertainty of the entire market, and therefore cannot be mitigated even by pair-trading it against the equity that is not highly correlated to it. On the other hand, Kinsale Capital's unsystematic risk describes the types of risk that we can protect against, at least to some degree, by selecting a matching pair that is not perfectly correlated to Kinsale Capital Group.
When determining whether Kinsale Capital Group is a strong investment it is important to analyze Kinsale Capital's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Kinsale Capital's future performance. For an informed investment choice regarding Kinsale Stock, refer to the following important reports: Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Kinsale Capital Group. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in state. You can also try the Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Is Property & Casualty Insurance space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Kinsale Capital. If investors know Kinsale will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Kinsale Capital listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.056 | Dividend Share 0.6 | Earnings Share 17.77 | Revenue Per Share | Quarterly Revenue Growth 0.174 |
The market value of Kinsale Capital Group is measured differently than its book value, which is the value of Kinsale that is recorded on the company's balance sheet. Investors also form their own opinion of Kinsale Capital's value that differs from its market value or its book value, called intrinsic value, which is Kinsale Capital's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Kinsale Capital's market value can be influenced by many factors that don't directly affect Kinsale Capital's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Kinsale Capital's value and its price as these two are different measures arrived at by different means. Investors typically determine if Kinsale Capital is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Kinsale Capital's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.