Correlation Between Shinil Electronics and KB Financial
Can any of the company-specific risk be diversified away by investing in both Shinil Electronics 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 Shinil Electronics and KB Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shinil Electronics Co and KB Financial Group, you can compare the effects of market volatilities on Shinil Electronics 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 Shinil Electronics with a short position of KB Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shinil Electronics and KB Financial.
Diversification Opportunities for Shinil Electronics and KB Financial
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shinil and 105560 is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Shinil Electronics Co 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 Shinil Electronics 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 Shinil Electronics Co 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 Shinil Electronics i.e., Shinil Electronics and KB Financial go up and down completely randomly.
Pair Corralation between Shinil Electronics and KB Financial
Assuming the 90 days trading horizon Shinil Electronics Co is expected to under-perform the KB Financial. But the stock apears to be less risky and, when comparing its historical volatility, Shinil Electronics Co is 2.1 times less risky than KB Financial. The stock trades about -0.07 of its potential returns per unit of risk. The KB Financial Group is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 6,116,617 in KB Financial Group on November 3, 2024 and sell it today you would earn a total of 3,053,383 from holding KB Financial Group or generate 49.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shinil Electronics Co vs. KB Financial Group
Performance |
| Timeline |
| Shinil Electronics |
| KB Financial Group |
Shinil Electronics and KB Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shinil Electronics and KB Financial
The main advantage of trading using opposite Shinil Electronics and KB Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shinil Electronics 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.| Shinil Electronics vs. Samsung Electronics Co | Shinil Electronics vs. Samsung Electronics Co | Shinil Electronics vs. Hyundai Motor Co | Shinil Electronics vs. Hyundai Motor |
| KB Financial vs. Daechang Steel Co | KB Financial vs. Daehan Steel | KB Financial vs. Dongbang Transport Logistics | KB Financial vs. Dongil Metal Co |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |