Correlation Between KB Financial and 1911 Gold
Can any of the company-specific risk be diversified away by investing in both KB Financial and 1911 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 1911 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 1911 Gold Corp, you can compare the effects of market volatilities on KB Financial and 1911 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 1911 Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of KB Financial and 1911 Gold.
Diversification Opportunities for KB Financial and 1911 Gold
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between KB Financial and 1911 is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding KB Financial Group and 1911 Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 1911 Gold Corp 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 1911 Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 1911 Gold Corp has no effect on the direction of KB Financial i.e., KB Financial and 1911 Gold go up and down completely randomly.
Pair Corralation between KB Financial and 1911 Gold
Allowing for the 90-day total investment horizon KB Financial is expected to generate 2.22 times less return on investment than 1911 Gold. But when comparing it to its historical volatility, KB Financial Group is 3.4 times less risky than 1911 Gold. It trades about 0.32 of its potential returns per unit of risk. 1911 Gold Corp is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 11.00 in 1911 Gold Corp on November 4, 2024 and sell it today you would earn a total of 2.00 from holding 1911 Gold Corp or generate 18.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
KB Financial Group vs. 1911 Gold Corp
Performance |
| Timeline |
| KB Financial Group |
| 1911 Gold Corp |
KB Financial and 1911 Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KB Financial and 1911 Gold
The main advantage of trading using opposite KB Financial and 1911 Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KB Financial position performs unexpectedly, 1911 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 1911 Gold will offset losses from the drop in 1911 Gold'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 |
| 1911 Gold vs. Antioquia Gold | 1911 Gold vs. Asante Gold | 1911 Gold vs. Antilles Gold Limited | 1911 Gold vs. Allegiant Gold |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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