Correlation Between Shinsegae Information and KB Financial
Can any of the company-specific risk be diversified away by investing in both Shinsegae 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 Shinsegae 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 Shinsegae Information Communication and KB Financial Group, you can compare the effects of market volatilities on Shinsegae 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 Shinsegae Information with a short position of KB Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shinsegae Information and KB Financial.
Diversification Opportunities for Shinsegae Information and KB Financial
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shinsegae and 105560 is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Shinsegae Information Communic 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 Shinsegae 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 Shinsegae Information Communication 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 Shinsegae Information i.e., Shinsegae Information and KB Financial go up and down completely randomly.
Pair Corralation between Shinsegae Information and KB Financial
Assuming the 90 days trading horizon Shinsegae Information is expected to generate 1.61 times less return on investment than KB Financial. In addition to that, Shinsegae Information is 1.28 times more volatile than KB Financial Group. It trades about 0.04 of its total potential returns per unit of risk. KB Financial Group is currently generating about 0.08 per unit of volatility. If you would invest 4,820,683 in KB Financial Group on January 25, 2025 and sell it today you would earn a total of 3,869,317 from holding KB Financial Group or generate 80.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.71% |
| Values | Daily Returns |
Shinsegae Information Communic vs. KB Financial Group
Performance |
| Timeline |
| Shinsegae Information |
| KB Financial Group |
Shinsegae Information and KB Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shinsegae Information and KB Financial
The main advantage of trading using opposite Shinsegae Information and KB Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shinsegae 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.| Shinsegae Information vs. AptaBio Therapeutics | Shinsegae Information vs. Daewoo SBI SPAC | Shinsegae Information vs. Dream Security co | Shinsegae Information vs. Microfriend |
| KB Financial vs. Samsung Electronics Co | KB Financial vs. Samsung Electronics Co | KB Financial vs. Hyundai Motor Co | KB Financial vs. Hyundai Motor 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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