Correlation Between KB Financial and Rjd Green
Can any of the company-specific risk be diversified away by investing in both KB Financial and Rjd Green 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 Rjd Green 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 Rjd Green, you can compare the effects of market volatilities on KB Financial and Rjd Green 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 Rjd Green. Check out your portfolio center. Please also check ongoing floating volatility patterns of KB Financial and Rjd Green.
Diversification Opportunities for KB Financial and Rjd Green
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between KB Financial and Rjd is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding KB Financial Group and Rjd Green in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rjd Green 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 Rjd Green. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rjd Green has no effect on the direction of KB Financial i.e., KB Financial and Rjd Green go up and down completely randomly.
Pair Corralation between KB Financial and Rjd Green
Allowing for the 90-day total investment horizon KB Financial Group is expected to generate 0.34 times more return on investment than Rjd Green. However, KB Financial Group is 2.92 times less risky than Rjd Green. It trades about 0.17 of its potential returns per unit of risk. Rjd Green is currently generating about -0.42 per unit of risk. If you would invest 6,524 in KB Financial Group on September 1, 2024 and sell it today you would earn a total of 369.00 from holding KB Financial Group or generate 5.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
KB Financial Group vs. Rjd Green
Performance |
| Timeline |
| KB Financial Group |
| Rjd Green |
KB Financial and Rjd Green Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KB Financial and Rjd Green
The main advantage of trading using opposite KB Financial and Rjd Green positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KB Financial position performs unexpectedly, Rjd Green 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 Rjd Green will offset losses from the drop in Rjd Green'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 |
| Rjd Green vs. Alaska Power Telephone | Rjd Green vs. Windrock Land Co | Rjd Green vs. 3M Company | Rjd Green vs. Epazz 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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