Correlation Between KB Financial and Goliath Resources
Can any of the company-specific risk be diversified away by investing in both KB Financial and Goliath Resources 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 Goliath Resources 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 Goliath Resources Limited, you can compare the effects of market volatilities on KB Financial and Goliath Resources 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 Goliath Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of KB Financial and Goliath Resources.
Diversification Opportunities for KB Financial and Goliath Resources
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between KB Financial and Goliath is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding KB Financial Group and Goliath Resources Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goliath Resources 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 Goliath Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Goliath Resources has no effect on the direction of KB Financial i.e., KB Financial and Goliath Resources go up and down completely randomly.
Pair Corralation between KB Financial and Goliath Resources
Allowing for the 90-day total investment horizon KB Financial Group is expected to generate 0.58 times more return on investment than Goliath Resources. However, KB Financial Group is 1.72 times less risky than Goliath Resources. It trades about 0.15 of its potential returns per unit of risk. Goliath Resources Limited is currently generating about -0.14 per unit of risk. If you would invest 6,734 in KB Financial Group on August 31, 2024 and sell it today you would earn a total of 345.00 from holding KB Financial Group or generate 5.12% 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. Goliath Resources Limited
Performance |
| Timeline |
| KB Financial Group |
| Goliath Resources |
KB Financial and Goliath Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KB Financial and Goliath Resources
The main advantage of trading using opposite KB Financial and Goliath Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KB Financial position performs unexpectedly, Goliath Resources 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 Goliath Resources will offset losses from the drop in Goliath Resources' 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 |
| Goliath Resources vs. Gold79 Mines | Goliath Resources vs. Cartier Iron Corp | Goliath Resources vs. Arctic Star Exploration | Goliath Resources vs. Arras Minerals 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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