Correlation Between KB Financial and Aeroporto Guglielmo
Can any of the company-specific risk be diversified away by investing in both KB Financial and Aeroporto Guglielmo 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 Aeroporto Guglielmo 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 Aeroporto Guglielmo Marconi, you can compare the effects of market volatilities on KB Financial and Aeroporto Guglielmo 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 Aeroporto Guglielmo. Check out your portfolio center. Please also check ongoing floating volatility patterns of KB Financial and Aeroporto Guglielmo.
Diversification Opportunities for KB Financial and Aeroporto Guglielmo
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between KBIA and Aeroporto is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding KB Financial Group and Aeroporto Guglielmo Marconi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aeroporto Guglielmo 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 Aeroporto Guglielmo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aeroporto Guglielmo has no effect on the direction of KB Financial i.e., KB Financial and Aeroporto Guglielmo go up and down completely randomly.
Pair Corralation between KB Financial and Aeroporto Guglielmo
Assuming the 90 days trading horizon KB Financial Group is expected to generate 1.22 times more return on investment than Aeroporto Guglielmo. However, KB Financial is 1.22 times more volatile than Aeroporto Guglielmo Marconi. It trades about 0.31 of its potential returns per unit of risk. Aeroporto Guglielmo Marconi is currently generating about 0.13 per unit of risk. If you would invest 5,400 in KB Financial Group on November 3, 2024 and sell it today you would earn a total of 600.00 from holding KB Financial Group or generate 11.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
KB Financial Group vs. Aeroporto Guglielmo Marconi
Performance |
| Timeline |
| KB Financial Group |
| Aeroporto Guglielmo |
KB Financial and Aeroporto Guglielmo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KB Financial and Aeroporto Guglielmo
The main advantage of trading using opposite KB Financial and Aeroporto Guglielmo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KB Financial position performs unexpectedly, Aeroporto Guglielmo 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 Aeroporto Guglielmo will offset losses from the drop in Aeroporto Guglielmo's long position.| KB Financial vs. DENTSPLY SIRONA | KB Financial vs. Western Copper and | KB Financial vs. COSMOSTEEL HLDGS | KB Financial vs. United States Steel |
| Aeroporto Guglielmo vs. Harmony Gold Mining | Aeroporto Guglielmo vs. MAG SILVER | Aeroporto Guglielmo vs. MCEWEN MINING INC | Aeroporto Guglielmo vs. SBI Insurance Group |
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 Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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