Correlation Between KB Financial and Mirae Asset
Can any of the company-specific risk be diversified away by investing in both KB Financial and Mirae Asset 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 Mirae Asset 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 Mirae Asset Daewoo, you can compare the effects of market volatilities on KB Financial and Mirae Asset 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 Mirae Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of KB Financial and Mirae Asset.
Diversification Opportunities for KB Financial and Mirae Asset
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between 105560 and Mirae is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding KB Financial Group and Mirae Asset Daewoo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mirae Asset Daewoo 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 Mirae Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mirae Asset Daewoo has no effect on the direction of KB Financial i.e., KB Financial and Mirae Asset go up and down completely randomly.
Pair Corralation between KB Financial and Mirae Asset
Assuming the 90 days trading horizon KB Financial is expected to generate 1.43 times less return on investment than Mirae Asset. But when comparing it to its historical volatility, KB Financial Group is 3.98 times less risky than Mirae Asset. It trades about 0.17 of its potential returns per unit of risk. Mirae Asset Daewoo is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 425,500 in Mirae Asset Daewoo on September 1, 2024 and sell it today you would earn a total of 22,500 from holding Mirae Asset Daewoo or generate 5.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
KB Financial Group vs. Mirae Asset Daewoo
Performance |
| Timeline |
| KB Financial Group |
| Mirae Asset Daewoo |
KB Financial and Mirae Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KB Financial and Mirae Asset
The main advantage of trading using opposite KB Financial and Mirae Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KB Financial position performs unexpectedly, Mirae Asset 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 Mirae Asset will offset losses from the drop in Mirae Asset's long position.| KB Financial vs. Korea Information Engineering | KB Financial vs. SCI Information Service | KB Financial vs. Atinum Investment Co | KB Financial vs. Samyung Trading Co |
| Mirae Asset vs. Daol Investment Securities | Mirae Asset vs. Dongbang Transport Logistics | Mirae Asset vs. Shinsegae Engineering Construction | Mirae Asset vs. KEPCO Engineering Construction |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |