Correlation Between KB Financial and EXA EC
Can any of the company-specific risk be diversified away by investing in both KB Financial and EXA EC 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 EXA EC 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 EXA EC Inc, you can compare the effects of market volatilities on KB Financial and EXA EC 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 EXA EC. Check out your portfolio center. Please also check ongoing floating volatility patterns of KB Financial and EXA EC.
Diversification Opportunities for KB Financial and EXA EC
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between 105560 and EXA is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding KB Financial Group and EXA EC Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EXA EC Inc 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 EXA EC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EXA EC Inc has no effect on the direction of KB Financial i.e., KB Financial and EXA EC go up and down completely randomly.
Pair Corralation between KB Financial and EXA EC
Assuming the 90 days trading horizon KB Financial Group is expected to under-perform the EXA EC. But the stock apears to be less risky and, when comparing its historical volatility, KB Financial Group is 1.11 times less risky than EXA EC. The stock trades about -0.28 of its potential returns per unit of risk. The EXA EC Inc is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 71,900 in EXA EC Inc on November 29, 2024 and sell it today you would earn a total of 6,500 from holding EXA EC Inc or generate 9.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
KB Financial Group vs. EXA EC Inc
Performance |
| Timeline |
| KB Financial Group |
| EXA EC Inc |
KB Financial and EXA EC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KB Financial and EXA EC
The main advantage of trading using opposite KB Financial and EXA EC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KB Financial position performs unexpectedly, EXA EC 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 EXA EC will offset losses from the drop in EXA EC's long position.| KB Financial vs. KPX Green Chemical | KB Financial vs. Samsung Life Insurance | KB Financial vs. Polaris Office Corp | KB Financial vs. Innowireless Co |
| EXA EC vs. LG Household Healthcare | EXA EC vs. Ssangyong Information Communication | EXA EC vs. Hyundai Home Shopping | EXA EC vs. Polaris Office Corp |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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