Correlation Between KB Financial and Spartan Delta
Can any of the company-specific risk be diversified away by investing in both KB Financial and Spartan Delta 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 Spartan Delta 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 Spartan Delta Corp, you can compare the effects of market volatilities on KB Financial and Spartan Delta 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 Spartan Delta. Check out your portfolio center. Please also check ongoing floating volatility patterns of KB Financial and Spartan Delta.
Diversification Opportunities for KB Financial and Spartan Delta
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between KB Financial and Spartan is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding KB Financial Group and Spartan Delta Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Spartan Delta 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 Spartan Delta. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Spartan Delta Corp has no effect on the direction of KB Financial i.e., KB Financial and Spartan Delta go up and down completely randomly.
Pair Corralation between KB Financial and Spartan Delta
Allowing for the 90-day total investment horizon KB Financial Group is expected to generate 0.74 times more return on investment than Spartan Delta. However, KB Financial Group is 1.35 times less risky than Spartan Delta. It trades about 0.09 of its potential returns per unit of risk. Spartan Delta Corp is currently generating about -0.06 per unit of risk. If you would invest 5,695 in KB Financial Group on August 29, 2024 and sell it today you would earn a total of 1,384 from holding KB Financial Group or generate 24.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 84.13% |
| Values | Daily Returns |
KB Financial Group vs. Spartan Delta Corp
Performance |
| Timeline |
| KB Financial Group |
| Spartan Delta Corp |
KB Financial and Spartan Delta Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KB Financial and Spartan Delta
The main advantage of trading using opposite KB Financial and Spartan Delta positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KB Financial position performs unexpectedly, Spartan Delta 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 Spartan Delta will offset losses from the drop in Spartan Delta'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 |
| Spartan Delta vs. Tamarack Valley Energy | Spartan Delta vs. Headwater Exploration | Spartan Delta vs. Cardinal Energy | Spartan Delta vs. Kelt Exploration |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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