Correlation Between KB Financial and SEOHAN Const
Can any of the company-specific risk be diversified away by investing in both KB Financial and SEOHAN Const 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 SEOHAN Const 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 SEOHAN Const EngcoLtd, you can compare the effects of market volatilities on KB Financial and SEOHAN Const 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 SEOHAN Const. Check out your portfolio center. Please also check ongoing floating volatility patterns of KB Financial and SEOHAN Const.
Diversification Opportunities for KB Financial and SEOHAN Const
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between 105560 and SEOHAN is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding KB Financial Group and SEOHAN Const EngcoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SEOHAN Const EngcoLtd 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 SEOHAN Const. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SEOHAN Const EngcoLtd has no effect on the direction of KB Financial i.e., KB Financial and SEOHAN Const go up and down completely randomly.
Pair Corralation between KB Financial and SEOHAN Const
Assuming the 90 days trading horizon KB Financial Group is expected to generate 1.49 times more return on investment than SEOHAN Const. However, KB Financial is 1.49 times more volatile than SEOHAN Const EngcoLtd. It trades about 0.08 of its potential returns per unit of risk. SEOHAN Const EngcoLtd is currently generating about -0.05 per unit of risk. If you would invest 4,679,812 in KB Financial Group on August 24, 2024 and sell it today you would earn a total of 5,160,188 from holding KB Financial Group or generate 110.26% 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. SEOHAN Const EngcoLtd
Performance |
| Timeline |
| KB Financial Group |
| SEOHAN Const EngcoLtd |
KB Financial and SEOHAN Const Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KB Financial and SEOHAN Const
The main advantage of trading using opposite KB Financial and SEOHAN Const positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KB Financial position performs unexpectedly, SEOHAN Const 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 SEOHAN Const will offset losses from the drop in SEOHAN Const's long position.| KB Financial vs. Korea New Network | KB Financial vs. Dong A Eltek | KB Financial vs. Dreamus Company | KB Financial vs. SK Bioscience Co |
| SEOHAN Const vs. Hanyang ENG Co | SEOHAN Const vs. Nam Hwa Construction | SEOHAN Const vs. KT Submarine Co | SEOHAN Const vs. Yooshin Engineering |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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