Correlation Between KB Financial and Clean Science
Can any of the company-specific risk be diversified away by investing in both KB Financial and Clean Science 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 Clean Science 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 Clean Science co, you can compare the effects of market volatilities on KB Financial and Clean Science 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 Clean Science. Check out your portfolio center. Please also check ongoing floating volatility patterns of KB Financial and Clean Science.
Diversification Opportunities for KB Financial and Clean Science
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between 105560 and Clean is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding KB Financial Group and Clean Science co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clean Science co 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 Clean Science. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clean Science co has no effect on the direction of KB Financial i.e., KB Financial and Clean Science go up and down completely randomly.
Pair Corralation between KB Financial and Clean Science
Assuming the 90 days trading horizon KB Financial Group is expected to generate 1.85 times more return on investment than Clean Science. However, KB Financial is 1.85 times more volatile than Clean Science co. It trades about 0.0 of its potential returns per unit of risk. Clean Science co is currently generating about -0.53 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 lose (20,000) from holding KB Financial Group or give up 0.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
KB Financial Group vs. Clean Science co
Performance |
| Timeline |
| KB Financial Group |
| Clean Science co |
KB Financial and Clean Science Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KB Financial and Clean Science
The main advantage of trading using opposite KB Financial and Clean Science positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KB Financial position performs unexpectedly, Clean Science 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 Clean Science will offset losses from the drop in Clean Science's long position.| KB Financial vs. Cube Entertainment | KB Financial vs. Dreamus Company | KB Financial vs. LG Energy Solution | KB Financial vs. Dongwon System |
| Clean Science vs. Samsung Electronics Co | Clean Science vs. Samsung Electronics Co | Clean Science vs. KB Financial Group | Clean Science 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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