Correlation Between TAEYANG and KB Financial
Can any of the company-specific risk be diversified away by investing in both TAEYANG 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 TAEYANG and KB Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TAEYANG and KB Financial Group, you can compare the effects of market volatilities on TAEYANG 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 TAEYANG with a short position of KB Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of TAEYANG and KB Financial.
Diversification Opportunities for TAEYANG and KB Financial
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between TAEYANG and 105560 is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding TAEYANG 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 TAEYANG 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 TAEYANG 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 TAEYANG i.e., TAEYANG and KB Financial go up and down completely randomly.
Pair Corralation between TAEYANG and KB Financial
If you would invest 8,460,000 in KB Financial Group on October 17, 2024 and sell it today you would earn a total of 530,000 from holding KB Financial Group or generate 6.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 5.0% |
| Values | Daily Returns |
TAEYANG vs. KB Financial Group
Performance |
| Timeline |
| TAEYANG |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| KB Financial Group |
TAEYANG and KB Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TAEYANG and KB Financial
The main advantage of trading using opposite TAEYANG and KB Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TAEYANG 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.| TAEYANG vs. Digital Power Communications | TAEYANG vs. Homecast CoLtd | TAEYANG vs. Korea Information Communications | TAEYANG vs. Automobile Pc |
| KB Financial vs. Hanwha Life Insurance | KB Financial vs. Hanjin Transportation Co | KB Financial vs. Nature and Environment | KB Financial vs. Samsung Life Insurance |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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