Correlation Between KB Financial and Bayhorse Silver
Can any of the company-specific risk be diversified away by investing in both KB Financial and Bayhorse Silver 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 Bayhorse Silver 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 Bayhorse Silver, you can compare the effects of market volatilities on KB Financial and Bayhorse Silver 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 Bayhorse Silver. Check out your portfolio center. Please also check ongoing floating volatility patterns of KB Financial and Bayhorse Silver.
Diversification Opportunities for KB Financial and Bayhorse Silver
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between KB Financial and Bayhorse is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding KB Financial Group and Bayhorse Silver in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bayhorse Silver 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 Bayhorse Silver. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bayhorse Silver has no effect on the direction of KB Financial i.e., KB Financial and Bayhorse Silver go up and down completely randomly.
Pair Corralation between KB Financial and Bayhorse Silver
Allowing for the 90-day total investment horizon KB Financial Group is expected to generate 0.11 times more return on investment than Bayhorse Silver. However, KB Financial Group is 9.51 times less risky than Bayhorse Silver. It trades about -0.05 of its potential returns per unit of risk. Bayhorse Silver is currently generating about -0.06 per unit of risk. If you would invest 5,414 in KB Financial Group on December 31, 2024 and sell it today you would lose (78.00) from holding KB Financial Group or give up 1.44% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
KB Financial Group vs. Bayhorse Silver
Performance |
| Timeline |
| KB Financial Group |
| Bayhorse Silver |
KB Financial and Bayhorse Silver Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KB Financial and Bayhorse Silver
The main advantage of trading using opposite KB Financial and Bayhorse Silver positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KB Financial position performs unexpectedly, Bayhorse Silver 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 Bayhorse Silver will offset losses from the drop in Bayhorse Silver'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 |
| Bayhorse Silver vs. Golden Lake Exploration | Bayhorse Silver vs. Transition Metals Corp | Bayhorse Silver vs. Vendetta Mining Corp | Bayhorse Silver vs. Commerce Resources Corp |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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