Correlation Between KB Financial and Globex Mining
Can any of the company-specific risk be diversified away by investing in both KB Financial and Globex Mining 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 Globex Mining 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 Globex Mining Enterprises, you can compare the effects of market volatilities on KB Financial and Globex Mining 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 Globex Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of KB Financial and Globex Mining.
Diversification Opportunities for KB Financial and Globex Mining
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between KB Financial and Globex is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding KB Financial Group and Globex Mining Enterprises in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Globex Mining Enterprises 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 Globex Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Globex Mining Enterprises has no effect on the direction of KB Financial i.e., KB Financial and Globex Mining go up and down completely randomly.
Pair Corralation between KB Financial and Globex Mining
Allowing for the 90-day total investment horizon KB Financial Group is expected to generate 0.95 times more return on investment than Globex Mining. However, KB Financial Group is 1.05 times less risky than Globex Mining. It trades about 0.09 of its potential returns per unit of risk. Globex Mining Enterprises is currently generating about 0.05 per unit of risk. If you would invest 3,795 in KB Financial Group on August 26, 2024 and sell it today you would earn a total of 3,198 from holding KB Financial Group or generate 84.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
KB Financial Group vs. Globex Mining Enterprises
Performance |
| Timeline |
| KB Financial Group |
| Globex Mining Enterprises |
KB Financial and Globex Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KB Financial and Globex Mining
The main advantage of trading using opposite KB Financial and Globex Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KB Financial position performs unexpectedly, Globex Mining 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 Globex Mining will offset losses from the drop in Globex Mining'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 |
| Globex Mining vs. Ascendant Resources | Globex Mining vs. Cantex Mine Development | Globex Mining vs. Amarc Resources | Globex Mining vs. Sterling Metals 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |