Correlation Between KB Financial and Brightrock Gold
Can any of the company-specific risk be diversified away by investing in both KB Financial and Brightrock 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 Brightrock 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 Brightrock Gold Corp, you can compare the effects of market volatilities on KB Financial and Brightrock 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 Brightrock Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of KB Financial and Brightrock Gold.
Diversification Opportunities for KB Financial and Brightrock Gold
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between KB Financial and Brightrock is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding KB Financial Group and Brightrock Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brightrock 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 Brightrock Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brightrock Gold Corp has no effect on the direction of KB Financial i.e., KB Financial and Brightrock Gold go up and down completely randomly.
Pair Corralation between KB Financial and Brightrock Gold
Allowing for the 90-day total investment horizon KB Financial Group is expected to generate 0.3 times more return on investment than Brightrock Gold. However, KB Financial Group is 3.31 times less risky than Brightrock Gold. It trades about 0.11 of its potential returns per unit of risk. Brightrock Gold Corp is currently generating about -0.04 per unit of risk. If you would invest 3,646 in KB Financial Group on August 26, 2024 and sell it today you would earn a total of 3,347 from holding KB Financial Group or generate 91.8% 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. Brightrock Gold Corp
Performance |
| Timeline |
| KB Financial Group |
| Brightrock Gold Corp |
KB Financial and Brightrock Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KB Financial and Brightrock Gold
The main advantage of trading using opposite KB Financial and Brightrock Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KB Financial position performs unexpectedly, Brightrock 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 Brightrock Gold will offset losses from the drop in Brightrock 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 |
| Brightrock Gold vs. Morningstar Unconstrained Allocation | Brightrock Gold vs. High Yield Municipal Fund | Brightrock Gold vs. Knife River | Brightrock Gold vs. Klckner Co SE |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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