Correlation Between Shinil Industrial and KB Financial
Can any of the company-specific risk be diversified away by investing in both Shinil Industrial 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 Industrial 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 Industrial Co and KB Financial Group, you can compare the effects of market volatilities on Shinil Industrial 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 Industrial with a short position of KB Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shinil Industrial and KB Financial.
Diversification Opportunities for Shinil Industrial and KB Financial
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shinil and 105560 is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Shinil Industrial 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 Industrial 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 Industrial 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 Industrial i.e., Shinil Industrial and KB Financial go up and down completely randomly.
Pair Corralation between Shinil Industrial and KB Financial
Assuming the 90 days trading horizon Shinil Industrial Co is expected to under-perform the KB Financial. But the stock apears to be less risky and, when comparing its historical volatility, Shinil Industrial Co is 2.23 times less risky than KB Financial. The stock trades about -0.02 of its potential returns per unit of risk. The KB Financial Group is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 8,500,000 in KB Financial Group on October 28, 2024 and sell it today you would earn a total of 390,000 from holding KB Financial Group or generate 4.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shinil Industrial Co vs. KB Financial Group
Performance |
| Timeline |
| Shinil Industrial |
| KB Financial Group |
Shinil Industrial and KB Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shinil Industrial and KB Financial
The main advantage of trading using opposite Shinil Industrial and KB Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shinil Industrial 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 Industrial vs. Solution Advanced Technology | Shinil Industrial vs. Daou Technology | Shinil Industrial vs. Global Standard Technology | Shinil Industrial vs. AeroSpace Technology of |
| KB Financial vs. Samsung Electronics Co | KB Financial vs. Samsung Electronics Co | KB Financial vs. SK Hynix | KB Financial vs. HMM 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |