Correlation Between PLAYWITH and KB Financial
Can any of the company-specific risk be diversified away by investing in both PLAYWITH 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 PLAYWITH and KB Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PLAYWITH and KB Financial Group, you can compare the effects of market volatilities on PLAYWITH 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 PLAYWITH with a short position of KB Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of PLAYWITH and KB Financial.
Diversification Opportunities for PLAYWITH and KB Financial
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between PLAYWITH and 105560 is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding PLAYWITH 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 PLAYWITH 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 PLAYWITH 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 PLAYWITH i.e., PLAYWITH and KB Financial go up and down completely randomly.
Pair Corralation between PLAYWITH and KB Financial
Assuming the 90 days trading horizon PLAYWITH is expected to under-perform the KB Financial. In addition to that, PLAYWITH is 1.31 times more volatile than KB Financial Group. It trades about -0.22 of its total potential returns per unit of risk. KB Financial Group is currently generating about 0.04 per unit of volatility. If you would invest 8,700,000 in KB Financial Group on October 13, 2024 and sell it today you would earn a total of 80,000 from holding KB Financial Group or generate 0.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
PLAYWITH vs. KB Financial Group
Performance |
| Timeline |
| PLAYWITH |
| KB Financial Group |
PLAYWITH and KB Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PLAYWITH and KB Financial
The main advantage of trading using opposite PLAYWITH and KB Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PLAYWITH 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.| PLAYWITH vs. Hankook Furniture Co | PLAYWITH vs. Green Cross Medical | PLAYWITH vs. Homecast CoLtd | PLAYWITH vs. DoubleU Games Co |
| KB Financial vs. Hotel Shilla Co | KB Financial vs. Shinsegae Food | KB Financial vs. Lotte Non Life Insurance | KB Financial vs. PLAYWITH |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |