Correlation Between ProAssurance and Kemper
Can any of the company-specific risk be diversified away by investing in both ProAssurance and Kemper 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 ProAssurance and Kemper into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ProAssurance and Kemper, you can compare the effects of market volatilities on ProAssurance and Kemper 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 ProAssurance with a short position of Kemper. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProAssurance and Kemper.
Diversification Opportunities for ProAssurance and Kemper
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between ProAssurance and Kemper is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding ProAssurance and Kemper in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kemper and ProAssurance 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 ProAssurance are associated (or correlated) with Kemper. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kemper has no effect on the direction of ProAssurance i.e., ProAssurance and Kemper go up and down completely randomly.
Pair Corralation between ProAssurance and Kemper
Considering the 90-day investment horizon ProAssurance is expected to generate 0.14 times more return on investment than Kemper. However, ProAssurance is 7.11 times less risky than Kemper. It trades about 0.11 of its potential returns per unit of risk. Kemper is currently generating about -0.06 per unit of risk. If you would invest 2,310 in ProAssurance on June 8, 2025 and sell it today you would earn a total of 66.00 from holding ProAssurance or generate 2.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ProAssurance vs. Kemper
Performance |
| Timeline |
| ProAssurance |
| Kemper |
ProAssurance and Kemper Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProAssurance and Kemper
The main advantage of trading using opposite ProAssurance and Kemper positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProAssurance position performs unexpectedly, Kemper 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 Kemper will offset losses from the drop in Kemper's long position.| ProAssurance vs. Argo Group International | ProAssurance vs. Horace Mann Educators | ProAssurance vs. Kemper | ProAssurance vs. Selective Insurance Group |
| Kemper vs. Selective Insurance Group | Kemper vs. Donegal Group B | Kemper vs. Argo Group International | Kemper vs. Global Indemnity PLC |
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.
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