Correlation Between KB Financial and Samyung Trading
Can any of the company-specific risk be diversified away by investing in both KB Financial and Samyung Trading 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 KB Financial and Samyung Trading into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KB Financial Group and Samyung Trading Co, you can compare the effects of market volatilities on KB Financial and Samyung Trading 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 KB Financial with a short position of Samyung Trading. Check out your portfolio center. Please also check ongoing floating volatility patterns of KB Financial and Samyung Trading.
Diversification Opportunities for KB Financial and Samyung Trading
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between 105560 and Samyung is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding KB Financial Group and Samyung Trading Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samyung Trading and KB Financial 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 KB Financial Group are associated (or correlated) with Samyung Trading. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samyung Trading has no effect on the direction of KB Financial i.e., KB Financial and Samyung Trading go up and down completely randomly.
Pair Corralation between KB Financial and Samyung Trading
Assuming the 90 days trading horizon KB Financial Group is expected to generate 1.3 times more return on investment than Samyung Trading. However, KB Financial is 1.3 times more volatile than Samyung Trading Co. It trades about 0.17 of its potential returns per unit of risk. Samyung Trading Co is currently generating about -0.37 per unit of risk. If you would invest 8,550,000 in KB Financial Group on October 26, 2024 and sell it today you would earn a total of 310,000 from holding KB Financial Group or generate 3.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
KB Financial Group vs. Samyung Trading Co
Performance |
| Timeline |
| KB Financial Group |
| Samyung Trading |
KB Financial and Samyung Trading Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KB Financial and Samyung Trading
The main advantage of trading using opposite KB Financial and Samyung Trading positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KB Financial position performs unexpectedly, Samyung Trading 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 Samyung Trading will offset losses from the drop in Samyung Trading's long position.| KB Financial vs. Daejung Chemicals Metals | KB Financial vs. MetaLabs Co | KB Financial vs. Dongbang Transport Logistics | KB Financial vs. Kbi Metal Co |
| Samyung Trading vs. KB Financial Group | Samyung Trading vs. Shinhan Financial Group | Samyung Trading vs. Hana Financial | Samyung Trading vs. Woori Financial Group |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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