Correlation Between Q2M Managementberatu and KB Financial
Can any of the company-specific risk be diversified away by investing in both Q2M Managementberatu and KB Financial 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 Q2M Managementberatu and KB Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Q2M Managementberatung AG and KB Financial Group, you can compare the effects of market volatilities on Q2M Managementberatu and KB Financial 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 Q2M Managementberatu with a short position of KB Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Q2M Managementberatu and KB Financial.
Diversification Opportunities for Q2M Managementberatu and KB Financial
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Q2M and KBIA is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Q2M Managementberatung AG and KB Financial Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KB Financial Group and Q2M Managementberatu 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 Q2M Managementberatung AG are associated (or correlated) with KB Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KB Financial Group has no effect on the direction of Q2M Managementberatu i.e., Q2M Managementberatu and KB Financial go up and down completely randomly.
Pair Corralation between Q2M Managementberatu and KB Financial
Assuming the 90 days trading horizon Q2M Managementberatung AG is expected to under-perform the KB Financial. But the stock apears to be less risky and, when comparing its historical volatility, Q2M Managementberatung AG is 4.11 times less risky than KB Financial. The stock trades about -0.01 of its potential returns per unit of risk. The KB Financial Group is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 3,097 in KB Financial Group on September 19, 2024 and sell it today you would earn a total of 2,403 from holding KB Financial Group or generate 77.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Q2M Managementberatung AG vs. KB Financial Group
Performance |
| Timeline |
| Q2M Managementberatung |
| KB Financial Group |
Q2M Managementberatu and KB Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Q2M Managementberatu and KB Financial
The main advantage of trading using opposite Q2M Managementberatu and KB Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Q2M Managementberatu position performs unexpectedly, KB Financial 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 KB Financial will offset losses from the drop in KB Financial's long position.| Q2M Managementberatu vs. LION ONE METALS | Q2M Managementberatu vs. Lion Biotechnologies | Q2M Managementberatu vs. Playtech plc | Q2M Managementberatu vs. JAPAN TOBACCO UNSPADR12 |
| KB Financial vs. Broadcom | KB Financial vs. Transportadora de Gas | KB Financial vs. Q2M Managementberatung AG | KB Financial vs. TRAINLINE PLC LS |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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