Correlation Between KB Financial and Youngsin Metal
Can any of the company-specific risk be diversified away by investing in both KB Financial and Youngsin Metal 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 Youngsin Metal 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 Youngsin Metal Industrial, you can compare the effects of market volatilities on KB Financial and Youngsin Metal 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 Youngsin Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of KB Financial and Youngsin Metal.
Diversification Opportunities for KB Financial and Youngsin Metal
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between 105560 and Youngsin is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding KB Financial Group and Youngsin Metal Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Youngsin Metal Industrial 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 Youngsin Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Youngsin Metal Industrial has no effect on the direction of KB Financial i.e., KB Financial and Youngsin Metal go up and down completely randomly.
Pair Corralation between KB Financial and Youngsin Metal
Assuming the 90 days trading horizon KB Financial Group is expected to generate 0.66 times more return on investment than Youngsin Metal. However, KB Financial Group is 1.51 times less risky than Youngsin Metal. It trades about 0.07 of its potential returns per unit of risk. Youngsin Metal Industrial is currently generating about -0.32 per unit of risk. If you would invest 9,620,000 in KB Financial Group on August 29, 2024 and sell it today you would earn a total of 250,000 from holding KB Financial Group or generate 2.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
KB Financial Group vs. Youngsin Metal Industrial
Performance |
| Timeline |
| KB Financial Group |
| Youngsin Metal Industrial |
KB Financial and Youngsin Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KB Financial and Youngsin Metal
The main advantage of trading using opposite KB Financial and Youngsin Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KB Financial position performs unexpectedly, Youngsin Metal 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 Youngsin Metal will offset losses from the drop in Youngsin Metal's long position.| KB Financial vs. Cube Entertainment | KB Financial vs. Dreamus Company | KB Financial vs. LG Energy Solution | KB Financial vs. Dongwon System |
| Youngsin Metal vs. Samsung Electronics Co | Youngsin Metal vs. Samsung Electronics Co | Youngsin Metal vs. KB Financial Group | Youngsin Metal vs. Shinhan 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 Stocks Directory module to find actively traded stocks across global markets.
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