Correlation Between KB Financial and Kiwoom
Can any of the company-specific risk be diversified away by investing in both KB Financial and Kiwoom 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 Kiwoom 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 Kiwoom, you can compare the effects of market volatilities on KB Financial and Kiwoom 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 Kiwoom. Check out your portfolio center. Please also check ongoing floating volatility patterns of KB Financial and Kiwoom.
Diversification Opportunities for KB Financial and Kiwoom
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between 105560 and Kiwoom is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding KB Financial Group and Kiwoom in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kiwoom 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 Kiwoom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kiwoom has no effect on the direction of KB Financial i.e., KB Financial and Kiwoom go up and down completely randomly.
Pair Corralation between KB Financial and Kiwoom
If you would invest 4,546,103 in KB Financial Group on September 15, 2024 and sell it today you would earn a total of 3,953,897 from holding KB Financial Group or generate 86.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 0.0% |
| Values | Daily Returns |
KB Financial Group vs. Kiwoom
Performance |
| Timeline |
| KB Financial Group |
| Kiwoom |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
KB Financial and Kiwoom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KB Financial and Kiwoom
The main advantage of trading using opposite KB Financial and Kiwoom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KB Financial position performs unexpectedly, Kiwoom 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 Kiwoom will offset losses from the drop in Kiwoom's long position.| KB Financial vs. Dongil Metal Co | KB Financial vs. Shinsegae Engineering Construction | KB Financial vs. Seoam Machinery Industry | KB Financial vs. Kyeryong Construction Industrial |
| Kiwoom vs. LG Household Healthcare | Kiwoom vs. Cuckoo Electronics Co | Kiwoom vs. PJ Electronics Co | Kiwoom vs. SungMoon Electronics Co |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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