Correlation Between KB Home and Banco Actinver

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both KB Home and Banco Actinver 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 Home and Banco Actinver into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KB Home and Banco Actinver SA, you can compare the effects of market volatilities on KB Home and Banco Actinver 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 Home with a short position of Banco Actinver. Check out your portfolio center. Please also check ongoing floating volatility patterns of KB Home and Banco Actinver.

Diversification Opportunities for KB Home and Banco Actinver

0.16
  Correlation Coefficient

Average diversification

The 3 months correlation between KBH and Banco is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding KB Home and Banco Actinver SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Banco Actinver SA and KB Home 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 Home are associated (or correlated) with Banco Actinver. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Banco Actinver SA has no effect on the direction of KB Home i.e., KB Home and Banco Actinver go up and down completely randomly.

Pair Corralation between KB Home and Banco Actinver

Assuming the 90 days trading horizon KB Home is expected to generate 0.11 times more return on investment than Banco Actinver. However, KB Home is 8.75 times less risky than Banco Actinver. It trades about 0.22 of its potential returns per unit of risk. Banco Actinver SA is currently generating about -0.22 per unit of risk. If you would invest  133,700  in KB Home on October 25, 2024 and sell it today you would earn a total of  2,300  from holding KB Home or generate 1.72% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy95.24%
ValuesDaily Returns

KB Home  vs.  Banco Actinver SA

 Performance 
       Timeline  
KB Home 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days KB Home has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's technical indicators remain fairly strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for the company investors.
Banco Actinver SA 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Banco Actinver SA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

KB Home and Banco Actinver Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with KB Home and Banco Actinver

The main advantage of trading using opposite KB Home and Banco Actinver positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KB Home position performs unexpectedly, Banco Actinver 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 Banco Actinver will offset losses from the drop in Banco Actinver's long position.
KB Home vs. Micron Technology
KB Home vs. Cognizant Technology Solutions
KB Home vs. Grupo Carso SAB
KB Home vs. United States Steel
The idea behind KB Home and Banco Actinver SA 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.
Banco Actinver vs. Cognizant Technology Solutions
Banco Actinver vs. KB Home
Banco Actinver vs. Verizon Communications
Banco Actinver vs. Micron Technology
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.

Other Complementary Tools

Portfolio Manager
State of the art Portfolio Manager to monitor and improve performance of your invested capital
Idea Breakdown
Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes
Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites
Companies Directory
Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals
Volatility Analysis
Get historical volatility and risk analysis based on latest market data


 
Macroaxis helps investors of all levels and skills to maximize the upside of all their holdings and minimize the risk associated with market volatility, economic swings, and company-specific events. View terms and conditions
 
Feedback Blog
Made with optimal in San Francisco
2024 Macroaxis LLC
COMMON DESTINATIONS
MAIN CATEGORIES
COMPANY