Correlation Between KB Financial and Moneta Gold
Can any of the company-specific risk be diversified away by investing in both KB Financial and Moneta 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 Moneta 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 Moneta Gold, you can compare the effects of market volatilities on KB Financial and Moneta 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 Moneta Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of KB Financial and Moneta Gold.
Diversification Opportunities for KB Financial and Moneta Gold
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between KB Financial and Moneta is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding KB Financial Group and Moneta Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Moneta Gold 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 Moneta Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Moneta Gold has no effect on the direction of KB Financial i.e., KB Financial and Moneta Gold go up and down completely randomly.
Pair Corralation between KB Financial and Moneta Gold
If you would invest 6,879 in KB Financial Group on August 29, 2024 and sell it today you would earn a total of 39.00 from holding KB Financial Group or generate 0.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.35% |
| Values | Daily Returns |
KB Financial Group vs. Moneta Gold
Performance |
| Timeline |
| KB Financial Group |
| Moneta Gold |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
KB Financial and Moneta Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KB Financial and Moneta Gold
The main advantage of trading using opposite KB Financial and Moneta Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KB Financial position performs unexpectedly, Moneta 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 Moneta Gold will offset losses from the drop in Moneta Gold's long position.The idea behind KB Financial Group and Moneta Gold pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Moneta Gold vs. Liberty Gold Corp | Moneta Gold vs. Lion One Metals | Moneta Gold vs. Galane Gold | Moneta Gold vs. Fortuna Silver Mines |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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