Correlation Between KB Financial and Surge Battery
Can any of the company-specific risk be diversified away by investing in both KB Financial and Surge Battery 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 Surge Battery 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 Surge Battery Metals, you can compare the effects of market volatilities on KB Financial and Surge Battery 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 Surge Battery. Check out your portfolio center. Please also check ongoing floating volatility patterns of KB Financial and Surge Battery.
Diversification Opportunities for KB Financial and Surge Battery
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between KB Financial and Surge is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding KB Financial Group and Surge Battery Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Surge Battery Metals 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 Surge Battery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Surge Battery Metals has no effect on the direction of KB Financial i.e., KB Financial and Surge Battery go up and down completely randomly.
Pair Corralation between KB Financial and Surge Battery
Allowing for the 90-day total investment horizon KB Financial is expected to generate 1.94 times less return on investment than Surge Battery. But when comparing it to its historical volatility, KB Financial Group is 2.81 times less risky than Surge Battery. It trades about 0.05 of its potential returns per unit of risk. Surge Battery Metals is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 21.00 in Surge Battery Metals on October 25, 2024 and sell it today you would earn a total of 3.00 from holding Surge Battery Metals or generate 14.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
KB Financial Group vs. Surge Battery Metals
Performance |
| Timeline |
| KB Financial Group |
| Surge Battery Metals |
KB Financial and Surge Battery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KB Financial and Surge Battery
The main advantage of trading using opposite KB Financial and Surge Battery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KB Financial position performs unexpectedly, Surge Battery 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 Surge Battery will offset losses from the drop in Surge Battery'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 |
| Surge Battery vs. Nevada Sunrise Gold | Surge Battery vs. Critical Elements | Surge Battery vs. Lithium Ionic Corp | Surge Battery vs. Green Technology Metals |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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