Correlation Between KB Financial and Guskin Gold
Can any of the company-specific risk be diversified away by investing in both KB Financial and Guskin 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 Guskin 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 Guskin Gold Corp, you can compare the effects of market volatilities on KB Financial and Guskin 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 Guskin Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of KB Financial and Guskin Gold.
Diversification Opportunities for KB Financial and Guskin Gold
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between KB Financial and Guskin is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding KB Financial Group and Guskin Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guskin 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 Guskin Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guskin Gold Corp has no effect on the direction of KB Financial i.e., KB Financial and Guskin Gold go up and down completely randomly.
Pair Corralation between KB Financial and Guskin Gold
If you would invest 0.01 in Guskin Gold Corp on September 12, 2024 and sell it today you would earn a total of 0.00 from holding Guskin Gold Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
KB Financial Group vs. Guskin Gold Corp
Performance |
| Timeline |
| KB Financial Group |
| Guskin Gold Corp |
KB Financial and Guskin Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KB Financial and Guskin Gold
The main advantage of trading using opposite KB Financial and Guskin Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KB Financial position performs unexpectedly, Guskin 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 Guskin Gold will offset losses from the drop in Guskin 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 |
| Guskin Gold vs. Revival Gold | Guskin Gold vs. Galiano Gold | Guskin Gold vs. US Gold Corp | Guskin Gold vs. HUMANA INC |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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