Correlation Between KB Financial and Angus Gold
Can any of the company-specific risk be diversified away by investing in both KB Financial and Angus Gold 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 KB Financial and Angus Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KB Financial Group and Angus Gold, you can compare the effects of market volatilities on KB Financial and Angus Gold 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 KB Financial with a short position of Angus Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of KB Financial and Angus Gold.
Diversification Opportunities for KB Financial and Angus Gold
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between KB Financial and Angus is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding KB Financial Group and Angus Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Angus Gold and KB Financial 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 KB Financial Group are associated (or correlated) with Angus Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Angus Gold has no effect on the direction of KB Financial i.e., KB Financial and Angus Gold go up and down completely randomly.
Pair Corralation between KB Financial and Angus Gold
Allowing for the 90-day total investment horizon KB Financial Group is expected to generate 0.17 times more return on investment than Angus Gold. However, KB Financial Group is 5.73 times less risky than Angus Gold. It trades about 0.02 of its potential returns per unit of risk. Angus Gold is currently generating about -0.15 per unit of risk. If you would invest 6,879 in KB Financial Group on August 29, 2024 and sell it today you would earn a total of 39.00 from holding KB Financial Group or generate 0.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
KB Financial Group vs. Angus Gold
Performance |
| Timeline |
| KB Financial Group |
| Angus Gold |
KB Financial and Angus Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KB Financial and Angus Gold
The main advantage of trading using opposite KB Financial and Angus Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KB Financial position performs unexpectedly, Angus Gold 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 Angus Gold will offset losses from the drop in Angus Gold's long position.| KB Financial vs. Banco Santander Brasil | KB Financial vs. CrossFirst Bankshares | KB Financial vs. Banco Bradesco SA | KB Financial vs. CF Bankshares |
| Angus Gold vs. Aurion Resources | Angus Gold vs. Liberty Gold Corp | Angus Gold vs. Orezone Gold Corp | Angus Gold vs. Fortuna Silver Mines |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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