Correlation Between KB Financial and Silver Elephant
Can any of the company-specific risk be diversified away by investing in both KB Financial and Silver Elephant 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 Silver Elephant 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 Silver Elephant Mining, you can compare the effects of market volatilities on KB Financial and Silver Elephant 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 Silver Elephant. Check out your portfolio center. Please also check ongoing floating volatility patterns of KB Financial and Silver Elephant.
Diversification Opportunities for KB Financial and Silver Elephant
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between KB Financial and Silver is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding KB Financial Group and Silver Elephant Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Silver Elephant Mining 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 Silver Elephant. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Silver Elephant Mining has no effect on the direction of KB Financial i.e., KB Financial and Silver Elephant go up and down completely randomly.
Pair Corralation between KB Financial and Silver Elephant
Allowing for the 90-day total investment horizon KB Financial Group is expected to generate 0.19 times more return on investment than Silver Elephant. However, KB Financial Group is 5.31 times less risky than Silver Elephant. It trades about 0.26 of its potential returns per unit of risk. Silver Elephant Mining is currently generating about -0.15 per unit of risk. If you would invest 5,867 in KB Financial Group on November 5, 2024 and sell it today you would earn a total of 380.00 from holding KB Financial Group or generate 6.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
KB Financial Group vs. Silver Elephant Mining
Performance |
| Timeline |
| KB Financial Group |
| Silver Elephant Mining |
KB Financial and Silver Elephant Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KB Financial and Silver Elephant
The main advantage of trading using opposite KB Financial and Silver Elephant positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KB Financial position performs unexpectedly, Silver Elephant 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 Silver Elephant will offset losses from the drop in Silver Elephant'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 |
| Silver Elephant vs. Commerce Resources Corp | Silver Elephant vs. Great Western Minerals | Silver Elephant vs. StrikePoint Gold | Silver Elephant vs. Eskay Mining 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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