Correlation Between BOSTON BEER and Kemper

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

By analyzing existing cross correlation between BOSTON BEER A and Kemper, you can compare the effects of market volatilities on BOSTON BEER 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 BOSTON BEER with a short position of Kemper. Check out your portfolio center. Please also check ongoing floating volatility patterns of BOSTON BEER and Kemper.

Diversification Opportunities for BOSTON BEER and Kemper

0.05

Correlation Coefficient

BOSTON BEER  Kemper

Significant diversification

The 3 months correlation between BOSTON and Kemper is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding BOSTON BEER A and Kemper in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kemper and BOSTON BEER 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 BOSTON BEER A 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 BOSTON BEER i.e., BOSTON BEER and Kemper go up and down completely randomly.

Pair Corralation between BOSTON BEER and Kemper

Assuming the 90 days trading horizon BOSTON BEER A is expected to under-perform the Kemper. In addition to that, BOSTON BEER is 1.24 times more volatile than Kemper. It trades about -0.22 of its total potential returns per unit of risk. Kemper is currently generating about 0.03 per unit of volatility. If you would invest  5,075  in Kemper on April 23, 2025 and sell it today you would earn a total of  125.00  from holding Kemper or generate 2.46% return on investment over 90 days.

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

BOSTON BEER A   vs.  Kemper

BOSTON BEER A

Risk-Adjusted Performance

Very Weak

Over the last 90 days BOSTON BEER A has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's technical and fundamental indicators remain rather sound which may send shares a bit higher in August 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Kemper

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Kemper are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, Kemper is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with BOSTON BEER and Kemper

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

The idea behind BOSTON BEER A and Kemper 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.