Correlation Between Cleanaway Waste and KB Financial
Can any of the company-specific risk be diversified away by investing in both Cleanaway Waste 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 Cleanaway Waste and KB Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cleanaway Waste Management and KB Financial Group, you can compare the effects of market volatilities on Cleanaway Waste 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 Cleanaway Waste with a short position of KB Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cleanaway Waste and KB Financial.
Diversification Opportunities for Cleanaway Waste and KB Financial
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Cleanaway and KBIA is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Cleanaway Waste Management 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 Cleanaway Waste 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 Cleanaway Waste Management 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 Cleanaway Waste i.e., Cleanaway Waste and KB Financial go up and down completely randomly.
Pair Corralation between Cleanaway Waste and KB Financial
Assuming the 90 days trading horizon Cleanaway Waste Management is expected to generate 0.76 times more return on investment than KB Financial. However, Cleanaway Waste Management is 1.31 times less risky than KB Financial. It trades about -0.2 of its potential returns per unit of risk. KB Financial Group is currently generating about -0.17 per unit of risk. If you would invest 182.00 in Cleanaway Waste Management on September 21, 2024 and sell it today you would lose (18.00) from holding Cleanaway Waste Management or give up 9.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cleanaway Waste Management vs. KB Financial Group
Performance |
| Timeline |
| Cleanaway Waste Mana |
| KB Financial Group |
Cleanaway Waste and KB Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cleanaway Waste and KB Financial
The main advantage of trading using opposite Cleanaway Waste and KB Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cleanaway Waste 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.| Cleanaway Waste vs. Apple Inc | Cleanaway Waste vs. Apple Inc | Cleanaway Waste vs. Apple Inc | Cleanaway Waste vs. Apple Inc |
| KB Financial vs. Host Hotels Resorts | KB Financial vs. Cleanaway Waste Management | KB Financial vs. Japan Tobacco | KB Financial vs. InterContinental Hotels 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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