Correlation Between TITANIUM TRANSPORTGROUP and KB Financial
Can any of the company-specific risk be diversified away by investing in both TITANIUM TRANSPORTGROUP 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 TITANIUM TRANSPORTGROUP and KB Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TITANIUM TRANSPORTGROUP and KB Financial Group, you can compare the effects of market volatilities on TITANIUM TRANSPORTGROUP 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 TITANIUM TRANSPORTGROUP with a short position of KB Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of TITANIUM TRANSPORTGROUP and KB Financial.
Diversification Opportunities for TITANIUM TRANSPORTGROUP and KB Financial
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between TITANIUM and KBIA is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding TITANIUM TRANSPORTGROUP 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 TITANIUM TRANSPORTGROUP 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 TITANIUM TRANSPORTGROUP 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 TITANIUM TRANSPORTGROUP i.e., TITANIUM TRANSPORTGROUP and KB Financial go up and down completely randomly.
Pair Corralation between TITANIUM TRANSPORTGROUP and KB Financial
Assuming the 90 days horizon TITANIUM TRANSPORTGROUP is expected to generate 18.28 times less return on investment than KB Financial. But when comparing it to its historical volatility, TITANIUM TRANSPORTGROUP is 1.01 times less risky than KB Financial. It trades about 0.01 of its potential returns per unit of risk. KB Financial Group is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 3,171 in KB Financial Group on August 31, 2024 and sell it today you would earn a total of 3,479 from holding KB Financial Group or generate 109.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
TITANIUM TRANSPORTGROUP vs. KB Financial Group
Performance |
| Timeline |
| TITANIUM TRANSPORTGROUP |
| KB Financial Group |
TITANIUM TRANSPORTGROUP and KB Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TITANIUM TRANSPORTGROUP and KB Financial
The main advantage of trading using opposite TITANIUM TRANSPORTGROUP and KB Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TITANIUM TRANSPORTGROUP 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.| TITANIUM TRANSPORTGROUP vs. Superior Plus Corp | TITANIUM TRANSPORTGROUP vs. NMI Holdings | TITANIUM TRANSPORTGROUP vs. Origin Agritech | TITANIUM TRANSPORTGROUP vs. SIVERS SEMICONDUCTORS AB |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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