Correlation Between KBSTAR Global and KBSTAR HealthCare
Can any of the company-specific risk be diversified away by investing in both KBSTAR Global and KBSTAR HealthCare 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 KBSTAR Global and KBSTAR HealthCare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KBSTAR Global Metaverse and KBSTAR HealthCare Fixed, you can compare the effects of market volatilities on KBSTAR Global and KBSTAR HealthCare 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 KBSTAR Global with a short position of KBSTAR HealthCare. Check out your portfolio center. Please also check ongoing floating volatility patterns of KBSTAR Global and KBSTAR HealthCare.
Diversification Opportunities for KBSTAR Global and KBSTAR HealthCare
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between KBSTAR and KBSTAR is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding KBSTAR Global Metaverse and KBSTAR HealthCare Fixed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KBSTAR HealthCare Fixed and KBSTAR Global 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 KBSTAR Global Metaverse are associated (or correlated) with KBSTAR HealthCare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KBSTAR HealthCare Fixed has no effect on the direction of KBSTAR Global i.e., KBSTAR Global and KBSTAR HealthCare go up and down completely randomly.
Pair Corralation between KBSTAR Global and KBSTAR HealthCare
Assuming the 90 days trading horizon KBSTAR Global Metaverse is expected to generate 2.09 times more return on investment than KBSTAR HealthCare. However, KBSTAR Global is 2.09 times more volatile than KBSTAR HealthCare Fixed. It trades about 0.14 of its potential returns per unit of risk. KBSTAR HealthCare Fixed is currently generating about 0.06 per unit of risk. If you would invest 777,000 in KBSTAR Global Metaverse on November 5, 2024 and sell it today you would earn a total of 967,000 from holding KBSTAR Global Metaverse or generate 124.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.96% |
| Values | Daily Returns |
KBSTAR Global Metaverse vs. KBSTAR HealthCare Fixed
Performance |
| Timeline |
| KBSTAR Global Metaverse |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Solid
| KBSTAR HealthCare Fixed |
KBSTAR Global and KBSTAR HealthCare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KBSTAR Global and KBSTAR HealthCare
The main advantage of trading using opposite KBSTAR Global and KBSTAR HealthCare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KBSTAR Global position performs unexpectedly, KBSTAR HealthCare 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 KBSTAR HealthCare will offset losses from the drop in KBSTAR HealthCare's long position.| KBSTAR Global vs. KBSTAR 200TR | KBSTAR Global vs. KBSTAR HealthCare Fixed | KBSTAR Global vs. KBSTAR EURO STOXX | KBSTAR Global vs. KBSTAR Short Term IG |
| KBSTAR HealthCare vs. KBSTAR 200TR | KBSTAR HealthCare vs. KBSTAR EURO STOXX | KBSTAR HealthCare vs. KBSTAR Short Term IG | KBSTAR HealthCare vs. KBSTAR TDF2050 Active |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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