Correlation Between KB Financial and Younglimwon Soft
Can any of the company-specific risk be diversified away by investing in both KB Financial and Younglimwon Soft 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 Younglimwon Soft 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 Younglimwon Soft Lab, you can compare the effects of market volatilities on KB Financial and Younglimwon Soft 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 Younglimwon Soft. Check out your portfolio center. Please also check ongoing floating volatility patterns of KB Financial and Younglimwon Soft.
Diversification Opportunities for KB Financial and Younglimwon Soft
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between 105560 and Younglimwon is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding KB Financial Group and Younglimwon Soft Lab in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Younglimwon Soft Lab 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 Younglimwon Soft. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Younglimwon Soft Lab has no effect on the direction of KB Financial i.e., KB Financial and Younglimwon Soft go up and down completely randomly.
Pair Corralation between KB Financial and Younglimwon Soft
Assuming the 90 days trading horizon KB Financial Group is expected to generate 1.16 times more return on investment than Younglimwon Soft. However, KB Financial is 1.16 times more volatile than Younglimwon Soft Lab. It trades about 0.17 of its potential returns per unit of risk. Younglimwon Soft Lab is currently generating about -0.12 per unit of risk. If you would invest 9,070,000 in KB Financial Group on September 4, 2024 and sell it today you would earn a total of 570,000 from holding KB Financial Group or generate 6.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
KB Financial Group vs. Younglimwon Soft Lab
Performance |
| Timeline |
| KB Financial Group |
| Younglimwon Soft Lab |
KB Financial and Younglimwon Soft Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KB Financial and Younglimwon Soft
The main advantage of trading using opposite KB Financial and Younglimwon Soft positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KB Financial position performs unexpectedly, Younglimwon Soft 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 Younglimwon Soft will offset losses from the drop in Younglimwon Soft's long position.| KB Financial vs. Dongjin Semichem Co | KB Financial vs. AhnLab Inc | KB Financial vs. Posco ICT | KB Financial vs. CJ ENM |
| Younglimwon Soft vs. GS Retail Co | Younglimwon Soft vs. FOODWELL Co | Younglimwon Soft vs. Inzi Display CoLtd | Younglimwon Soft vs. CKH Food Health |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |