Correlation Between Daishin Information and KB Financial
Can any of the company-specific risk be diversified away by investing in both Daishin Information 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 Daishin Information and KB Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Daishin Information Communications and KB Financial Group, you can compare the effects of market volatilities on Daishin Information 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 Daishin Information with a short position of KB Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Daishin Information and KB Financial.
Diversification Opportunities for Daishin Information and KB Financial
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Daishin and 105560 is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Daishin Information Communicat 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 Daishin Information 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 Daishin Information Communications 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 Daishin Information i.e., Daishin Information and KB Financial go up and down completely randomly.
Pair Corralation between Daishin Information and KB Financial
Assuming the 90 days trading horizon Daishin Information is expected to generate 5.24 times less return on investment than KB Financial. But when comparing it to its historical volatility, Daishin Information Communications is 1.01 times less risky than KB Financial. It trades about 0.01 of its potential returns per unit of risk. KB Financial Group is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 5,264,828 in KB Financial Group on October 23, 2024 and sell it today you would earn a total of 3,615,172 from holding KB Financial Group or generate 68.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Daishin Information Communicat vs. KB Financial Group
Performance |
| Timeline |
| Daishin Information |
| KB Financial Group |
Daishin Information and KB Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Daishin Information and KB Financial
The main advantage of trading using opposite Daishin Information and KB Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Daishin Information 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.| Daishin Information vs. LAKE MATERIALS LTD | Daishin Information vs. LB Investment | Daishin Information vs. Solus Advanced Materials | Daishin Information vs. DB Financial Investment |
| KB Financial vs. Daishin Information Communications | KB Financial vs. Samwha Electronics Co | KB Financial vs. Shinil Electronics Co | KB Financial vs. Samji Electronics 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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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