Correlation Between KBSTAR Short and KBSTAR Global
Can any of the company-specific risk be diversified away by investing in both KBSTAR Short and KBSTAR Global 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 Short and KBSTAR Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KBSTAR Short Term IG and KBSTAR Global Metaverse, you can compare the effects of market volatilities on KBSTAR Short and KBSTAR Global 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 Short with a short position of KBSTAR Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of KBSTAR Short and KBSTAR Global.
Diversification Opportunities for KBSTAR Short and KBSTAR Global
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between KBSTAR and KBSTAR is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding KBSTAR Short Term IG and KBSTAR Global Metaverse in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KBSTAR Global Metaverse and KBSTAR Short 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 Short Term IG are associated (or correlated) with KBSTAR Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KBSTAR Global Metaverse has no effect on the direction of KBSTAR Short i.e., KBSTAR Short and KBSTAR Global go up and down completely randomly.
Pair Corralation between KBSTAR Short and KBSTAR Global
Assuming the 90 days trading horizon KBSTAR Short is expected to generate 3.5 times less return on investment than KBSTAR Global. But when comparing it to its historical volatility, KBSTAR Short Term IG is 3.29 times less risky than KBSTAR Global. It trades about 0.14 of its potential returns per unit of risk. KBSTAR Global Metaverse is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 1,006,500 in KBSTAR Global Metaverse on November 5, 2024 and sell it today you would earn a total of 737,500 from holding KBSTAR Global Metaverse or generate 73.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 98.19% |
| Values | Daily Returns |
KBSTAR Short Term IG vs. KBSTAR Global Metaverse
Performance |
| Timeline |
| KBSTAR Short Term |
| KBSTAR Global Metaverse |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Solid
KBSTAR Short and KBSTAR Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KBSTAR Short and KBSTAR Global
The main advantage of trading using opposite KBSTAR Short and KBSTAR Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KBSTAR Short position performs unexpectedly, KBSTAR Global 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 Global will offset losses from the drop in KBSTAR Global's long position.| KBSTAR Short vs. KBSTAR 200TR | KBSTAR Short vs. KBSTAR HealthCare Fixed | KBSTAR Short vs. KBSTAR EURO STOXX | KBSTAR Short vs. KBSTAR TDF2050 Active |
| KBSTAR Global vs. KBSTAR 200TR | KBSTAR Global vs. KBSTAR HealthCare Fixed | KBSTAR Global vs. KBSTAR EURO STOXX | KBSTAR Global vs. KBSTAR Short Term IG |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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