diversifiable risk of combining Kinsale Capital and Adaptive Medias 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 Adaptive Medias, you can compare the effects of market volatilities on Kinsale Capital and Adaptive Medias 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 Adaptive Medias. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinsale Capital and Adaptive Medias.
Diversification Opportunities for Kinsale Capital and Adaptive Medias
Pair Corralation between Kinsale Capital and Adaptive Medias
Kinsale Capital Group vs. Adaptive Medias
Kinsale Capital and Adaptive Medias Volatility Contrast
Pair Trading with Kinsale Capital and Adaptive MediasThe main advantage of trading using opposite Kinsale Capital and Adaptive Medias positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinsale Capital position performs unexpectedly, Adaptive Medias 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 Adaptive Medias will offset losses from the drop in Adaptive Medias' long position. The idea behind Kinsale Capital Group and Adaptive Medias 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.
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.