Correlation Between KB Financial and Samsung Card
Can any of the company-specific risk be diversified away by investing in both KB Financial and Samsung Card 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 Samsung Card 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 Samsung Card Co, you can compare the effects of market volatilities on KB Financial and Samsung Card 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 Samsung Card. Check out your portfolio center. Please also check ongoing floating volatility patterns of KB Financial and Samsung Card.
Diversification Opportunities for KB Financial and Samsung Card
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between 105560 and Samsung is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding KB Financial Group and Samsung Card Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung Card 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 Samsung Card. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samsung Card has no effect on the direction of KB Financial i.e., KB Financial and Samsung Card go up and down completely randomly.
Pair Corralation between KB Financial and Samsung Card
Assuming the 90 days trading horizon KB Financial Group is expected to generate 1.19 times more return on investment than Samsung Card. However, KB Financial is 1.19 times more volatile than Samsung Card Co. It trades about 0.17 of its potential returns per unit of risk. Samsung Card Co is currently generating about 0.18 per unit of risk. If you would invest 9,030,000 in KB Financial Group on September 1, 2024 and sell it today you would earn a total of 590,000 from holding KB Financial Group or generate 6.53% 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. Samsung Card Co
Performance |
| Timeline |
| KB Financial Group |
| Samsung Card |
KB Financial and Samsung Card Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KB Financial and Samsung Card
The main advantage of trading using opposite KB Financial and Samsung Card positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KB Financial position performs unexpectedly, Samsung Card 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 Samsung Card will offset losses from the drop in Samsung Card'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 |
| Samsung Card vs. Gyeongnam Steel Co | Samsung Card vs. Playgram Co | Samsung Card vs. Hyundai Home Shopping | Samsung Card vs. Home Center Holdings |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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