Correlation Between Ubiquoss Holdings and KB Financial
Can any of the company-specific risk be diversified away by investing in both Ubiquoss Holdings 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 Ubiquoss Holdings and KB Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ubiquoss Holdings and KB Financial Group, you can compare the effects of market volatilities on Ubiquoss Holdings 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 Ubiquoss Holdings with a short position of KB Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ubiquoss Holdings and KB Financial.
Diversification Opportunities for Ubiquoss Holdings and KB Financial
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Ubiquoss and 105560 is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Ubiquoss Holdings 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 Ubiquoss Holdings 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 Ubiquoss Holdings 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 Ubiquoss Holdings i.e., Ubiquoss Holdings and KB Financial go up and down completely randomly.
Pair Corralation between Ubiquoss Holdings and KB Financial
Assuming the 90 days trading horizon Ubiquoss Holdings is expected to under-perform the KB Financial. But the stock apears to be less risky and, when comparing its historical volatility, Ubiquoss Holdings is 2.76 times less risky than KB Financial. The stock trades about -0.11 of its potential returns per unit of risk. The KB Financial Group is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 4,915,982 in KB Financial Group on September 14, 2024 and sell it today you would earn a total of 3,784,018 from holding KB Financial Group or generate 76.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.59% |
| Values | Daily Returns |
Ubiquoss Holdings vs. KB Financial Group
Performance |
| Timeline |
| Ubiquoss Holdings |
| KB Financial Group |
Ubiquoss Holdings and KB Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ubiquoss Holdings and KB Financial
The main advantage of trading using opposite Ubiquoss Holdings and KB Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ubiquoss Holdings 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.| Ubiquoss Holdings vs. Sempio Foods Co | Ubiquoss Holdings vs. Hankuk Steel Wire | Ubiquoss Holdings vs. Hironic Co | Ubiquoss Holdings vs. CJ Seafood Corp |
| KB Financial vs. Shinhan Financial Group | KB Financial vs. Hana Financial | KB Financial vs. Woori Financial Group | KB Financial vs. Samsung 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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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