Correlation Between Inzi Display and KB Financial
Can any of the company-specific risk be diversified away by investing in both Inzi Display 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 Inzi Display and KB Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Inzi Display CoLtd and KB Financial Group, you can compare the effects of market volatilities on Inzi Display 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 Inzi Display with a short position of KB Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inzi Display and KB Financial.
Diversification Opportunities for Inzi Display and KB Financial
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Inzi and 105560 is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Inzi Display CoLtd 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 Inzi Display 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 Inzi Display CoLtd 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 Inzi Display i.e., Inzi Display and KB Financial go up and down completely randomly.
Pair Corralation between Inzi Display and KB Financial
Assuming the 90 days trading horizon Inzi Display is expected to generate 9.58 times less return on investment than KB Financial. In addition to that, Inzi Display is 1.49 times more volatile than KB Financial Group. It trades about 0.01 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 4,751,124 in KB Financial Group on August 31, 2024 and sell it today you would earn a total of 5,048,876 from holding KB Financial Group or generate 106.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Inzi Display CoLtd vs. KB Financial Group
Performance |
| Timeline |
| Inzi Display CoLtd |
| KB Financial Group |
Inzi Display and KB Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inzi Display and KB Financial
The main advantage of trading using opposite Inzi Display and KB Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inzi Display 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.| Inzi Display vs. Dongsin Engineering Construction | Inzi Display vs. Doosan Fuel Cell | Inzi Display vs. Daishin Balance 1 | Inzi Display vs. Total Soft Bank |
| KB Financial vs. Inzi Display CoLtd | KB Financial vs. Samsung Publishing Co | KB Financial vs. Pan Entertainment Co | KB Financial vs. Kaonmedia 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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