Correlation Between KB Financial and Artisan Consumer
Can any of the company-specific risk be diversified away by investing in both KB Financial and Artisan Consumer 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 Artisan Consumer 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 Artisan Consumer Goods, you can compare the effects of market volatilities on KB Financial and Artisan Consumer 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 Artisan Consumer. Check out your portfolio center. Please also check ongoing floating volatility patterns of KB Financial and Artisan Consumer.
Diversification Opportunities for KB Financial and Artisan Consumer
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between KB Financial and Artisan is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding KB Financial Group and Artisan Consumer Goods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Artisan Consumer Goods 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 Artisan Consumer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Artisan Consumer Goods has no effect on the direction of KB Financial i.e., KB Financial and Artisan Consumer go up and down completely randomly.
Pair Corralation between KB Financial and Artisan Consumer
Allowing for the 90-day total investment horizon KB Financial Group is expected to generate 0.29 times more return on investment than Artisan Consumer. However, KB Financial Group is 3.5 times less risky than Artisan Consumer. It trades about 0.15 of its potential returns per unit of risk. Artisan Consumer Goods is currently generating about -0.21 per unit of risk. If you would invest 6,734 in KB Financial Group on August 31, 2024 and sell it today you would earn a total of 345.00 from holding KB Financial Group or generate 5.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
KB Financial Group vs. Artisan Consumer Goods
Performance |
| Timeline |
| KB Financial Group |
| Artisan Consumer Goods |
KB Financial and Artisan Consumer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KB Financial and Artisan Consumer
The main advantage of trading using opposite KB Financial and Artisan Consumer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KB Financial position performs unexpectedly, Artisan Consumer 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 Artisan Consumer will offset losses from the drop in Artisan Consumer's long position.| KB Financial vs. Shinhan Financial Group | KB Financial vs. Woori Financial Group | KB Financial vs. Korea Electric Power | KB Financial vs. Orix Corp Ads |
| Artisan Consumer vs. South32 Limited | Artisan Consumer vs. NioCorp Developments Ltd | Artisan Consumer vs. HUMANA INC | Artisan Consumer vs. SCOR PK |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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