Correlation Between Five9 and Kinsale Capital

Can any of the company-specific risk be diversified away by investing in both Five9 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 Five9 and Kinsale Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Five9 Inc and Kinsale Capital Group, you can compare the effects of market volatilities on Five9 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 Five9 with a short position of Kinsale Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Five9 and Kinsale Capital.

Diversification Opportunities for Five9 and Kinsale Capital

0.32

Correlation Coefficient

Five9  Kinsale Capital

Weak diversification

The 3 months correlation between Five9 and Kinsale is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Five9 Inc 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 Five9 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 Five9 Inc 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 Five9 i.e., Five9 and Kinsale Capital go up and down completely randomly.

Pair Corralation between Five9 and Kinsale Capital

Given the investment horizon of 90 days Five9 Inc is expected to under-perform the Kinsale Capital. In addition to that, Five9 is 1.21 times more volatile than Kinsale Capital Group. It trades about -0.05 of its total potential returns per unit of risk. Kinsale Capital Group is currently generating about 0.03 per unit of volatility. If you would invest  38,094  in Kinsale Capital Group on May 7, 2025 and sell it today you would earn a total of  6,455  from holding Kinsale Capital Group or generate 16.94% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Five9 Inc  vs.  Kinsale Capital Group

Five9 Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Five9 Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Five9 is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Kinsale Capital Group

Risk-Adjusted Performance

Very Weak

Over the last 90 days Kinsale Capital Group has generated negative risk-adjusted returns adding no value to investors with long positions. 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.

Pair Trading with Five9 and Kinsale Capital

The main advantage of trading using opposite Five9 and Kinsale Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Five9 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.

The idea behind Five9 Inc and Kinsale Capital Group 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.