Correlation Between KB Financial and Hankukpackage
Can any of the company-specific risk be diversified away by investing in both KB Financial and Hankukpackage 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 Hankukpackage 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 Hankukpackage Co, you can compare the effects of market volatilities on KB Financial and Hankukpackage 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 Hankukpackage. Check out your portfolio center. Please also check ongoing floating volatility patterns of KB Financial and Hankukpackage.
Diversification Opportunities for KB Financial and Hankukpackage
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between 105560 and Hankukpackage is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding KB Financial Group and Hankukpackage Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hankukpackage 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 Hankukpackage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hankukpackage has no effect on the direction of KB Financial i.e., KB Financial and Hankukpackage go up and down completely randomly.
Pair Corralation between KB Financial and Hankukpackage
Assuming the 90 days trading horizon KB Financial Group is expected to generate 1.32 times more return on investment than Hankukpackage. However, KB Financial is 1.32 times more volatile than Hankukpackage Co. It trades about 0.17 of its potential returns per unit of risk. Hankukpackage Co is currently generating about -0.26 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 Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
KB Financial Group vs. Hankukpackage Co
Performance |
| Timeline |
| KB Financial Group |
| Hankukpackage |
KB Financial and Hankukpackage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KB Financial and Hankukpackage
The main advantage of trading using opposite KB Financial and Hankukpackage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KB Financial position performs unexpectedly, Hankukpackage 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 Hankukpackage will offset losses from the drop in Hankukpackage'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 |
| Hankukpackage vs. Busan Industrial Co | Hankukpackage vs. Busan Ind | Hankukpackage vs. Mirae Asset Daewoo | Hankukpackage vs. Finebesteel |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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