Correlation Between KBSTAR Battery and KBSTAR 200TR
Can any of the company-specific risk be diversified away by investing in both KBSTAR Battery and KBSTAR 200TR 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 Battery and KBSTAR 200TR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KBSTAR Battery Recycling and KBSTAR 200TR, you can compare the effects of market volatilities on KBSTAR Battery and KBSTAR 200TR 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 Battery with a short position of KBSTAR 200TR. Check out your portfolio center. Please also check ongoing floating volatility patterns of KBSTAR Battery and KBSTAR 200TR.
Diversification Opportunities for KBSTAR Battery and KBSTAR 200TR
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between KBSTAR and KBSTAR is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding KBSTAR Battery Recycling and KBSTAR 200TR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KBSTAR 200TR and KBSTAR Battery 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 Battery Recycling are associated (or correlated) with KBSTAR 200TR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KBSTAR 200TR has no effect on the direction of KBSTAR Battery i.e., KBSTAR Battery and KBSTAR 200TR go up and down completely randomly.
Pair Corralation between KBSTAR Battery and KBSTAR 200TR
Assuming the 90 days trading horizon KBSTAR Battery Recycling is expected to under-perform the KBSTAR 200TR. In addition to that, KBSTAR Battery is 1.92 times more volatile than KBSTAR 200TR. It trades about -0.11 of its total potential returns per unit of risk. KBSTAR 200TR is currently generating about 0.03 per unit of volatility. If you would invest 1,829,000 in KBSTAR 200TR on November 3, 2024 and sell it today you would earn a total of 23,000 from holding KBSTAR 200TR or generate 1.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
KBSTAR Battery Recycling vs. KBSTAR 200TR
Performance |
| Timeline |
| KBSTAR Battery Recycling |
| KBSTAR 200TR |
KBSTAR Battery and KBSTAR 200TR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KBSTAR Battery and KBSTAR 200TR
The main advantage of trading using opposite KBSTAR Battery and KBSTAR 200TR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KBSTAR Battery position performs unexpectedly, KBSTAR 200TR 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 200TR will offset losses from the drop in KBSTAR 200TR's long position.| KBSTAR Battery vs. KBSTAR 200TR | KBSTAR Battery vs. KBSTAR HealthCare Fixed | KBSTAR Battery vs. KBSTAR EURO STOXX | KBSTAR Battery vs. KBSTAR Short Term IG |
| KBSTAR 200TR vs. KBSTAR HealthCare Fixed | KBSTAR 200TR vs. KBSTAR EURO STOXX | KBSTAR 200TR vs. KBSTAR Short Term IG | KBSTAR 200TR 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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