Correlation Between KB Financial and Interflex
Can any of the company-specific risk be diversified away by investing in both KB Financial and Interflex 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 Interflex 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 Interflex Co, you can compare the effects of market volatilities on KB Financial and Interflex 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 Interflex. Check out your portfolio center. Please also check ongoing floating volatility patterns of KB Financial and Interflex.
Diversification Opportunities for KB Financial and Interflex
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between 105560 and Interflex is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding KB Financial Group and Interflex Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Interflex 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 Interflex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Interflex has no effect on the direction of KB Financial i.e., KB Financial and Interflex go up and down completely randomly.
Pair Corralation between KB Financial and Interflex
Assuming the 90 days trading horizon KB Financial Group is expected to under-perform the Interflex. In addition to that, KB Financial is 1.2 times more volatile than Interflex Co. It trades about -0.1 of its total potential returns per unit of risk. Interflex Co is currently generating about -0.11 per unit of volatility. If you would invest 916,000 in Interflex Co on September 13, 2024 and sell it today you would lose (63,000) from holding Interflex Co or give up 6.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
KB Financial Group vs. Interflex Co
Performance |
| Timeline |
| KB Financial Group |
| Interflex |
KB Financial and Interflex Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KB Financial and Interflex
The main advantage of trading using opposite KB Financial and Interflex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KB Financial position performs unexpectedly, Interflex 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 Interflex will offset losses from the drop in Interflex's long position.| KB Financial vs. Shinhan Financial Group | KB Financial vs. Hana Financial | KB Financial vs. Woori Financial Group | KB Financial vs. Samsung Electronics Co |
| Interflex vs. Cube Entertainment | Interflex vs. Dreamus Company | Interflex vs. LG Energy Solution | Interflex vs. Dongwon System |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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