Correlation Between KB Financial and St-Georges Eco-Mining
Can any of the company-specific risk be diversified away by investing in both KB Financial and St-Georges Eco-Mining 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 St-Georges Eco-Mining 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 St Georges Eco Mining Corp, you can compare the effects of market volatilities on KB Financial and St-Georges Eco-Mining 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 St-Georges Eco-Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of KB Financial and St-Georges Eco-Mining.
Diversification Opportunities for KB Financial and St-Georges Eco-Mining
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between KB Financial and St-Georges is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding KB Financial Group and St Georges Eco Mining Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on St-Georges Eco-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 St-Georges Eco-Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of St-Georges Eco-Mining has no effect on the direction of KB Financial i.e., KB Financial and St-Georges Eco-Mining go up and down completely randomly.
Pair Corralation between KB Financial and St-Georges Eco-Mining
Allowing for the 90-day total investment horizon KB Financial Group is expected to generate 0.25 times more return on investment than St-Georges Eco-Mining. However, KB Financial Group is 3.96 times less risky than St-Georges Eco-Mining. It trades about 0.09 of its potential returns per unit of risk. St Georges Eco Mining Corp is currently generating about 0.0 per unit of risk. If you would invest 3,518 in KB Financial Group on August 31, 2024 and sell it today you would earn a total of 3,375 from holding KB Financial Group or generate 95.94% 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. St Georges Eco Mining Corp
Performance |
| Timeline |
| KB Financial Group |
| St-Georges Eco-Mining |
KB Financial and St-Georges Eco-Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KB Financial and St-Georges Eco-Mining
The main advantage of trading using opposite KB Financial and St-Georges Eco-Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KB Financial position performs unexpectedly, St-Georges Eco-Mining 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 St-Georges Eco-Mining will offset losses from the drop in St-Georges Eco-Mining'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 |
| St-Georges Eco-Mining vs. Applied Minerals | St-Georges Eco-Mining vs. Artemis Resources | St-Georges Eco-Mining vs. Atco Mining | St-Georges Eco-Mining vs. American Lithium Minerals |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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