Correlation Between GAMEVIL and KB Financial
Can any of the company-specific risk be diversified away by investing in both GAMEVIL and KB Financial 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 GAMEVIL and KB Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GAMEVIL and KB Financial Group, you can compare the effects of market volatilities on GAMEVIL and KB Financial 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 GAMEVIL with a short position of KB Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of GAMEVIL and KB Financial.
Diversification Opportunities for GAMEVIL and KB Financial
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between GAMEVIL and 105560 is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding GAMEVIL and KB Financial Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KB Financial Group and GAMEVIL 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 GAMEVIL are associated (or correlated) with KB Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KB Financial Group has no effect on the direction of GAMEVIL i.e., GAMEVIL and KB Financial go up and down completely randomly.
Pair Corralation between GAMEVIL and KB Financial
Assuming the 90 days trading horizon GAMEVIL is expected to under-perform the KB Financial. In addition to that, GAMEVIL is 2.18 times more volatile than KB Financial Group. It trades about -0.21 of its total potential returns per unit of risk. KB Financial Group is currently generating about 0.45 per unit of volatility. If you would invest 8,340,000 in KB Financial Group on November 3, 2024 and sell it today you would earn a total of 830,000 from holding KB Financial Group or generate 9.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GAMEVIL vs. KB Financial Group
Performance |
| Timeline |
| GAMEVIL |
| KB Financial Group |
GAMEVIL and KB Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GAMEVIL and KB Financial
The main advantage of trading using opposite GAMEVIL and KB Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GAMEVIL position performs unexpectedly, KB Financial 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 KB Financial will offset losses from the drop in KB Financial's long position.The idea behind GAMEVIL and KB Financial 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.| KB Financial vs. Cloud Air CoLtd | KB Financial vs. Korea Investment Holdings | KB Financial vs. SBI Investment KOREA | KB Financial vs. Innowireless Co |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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