Correlation Between KB Financial and LabGenomics
Can any of the company-specific risk be diversified away by investing in both KB Financial and LabGenomics 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 LabGenomics 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 LabGenomics Co, you can compare the effects of market volatilities on KB Financial and LabGenomics 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 LabGenomics. Check out your portfolio center. Please also check ongoing floating volatility patterns of KB Financial and LabGenomics.
Diversification Opportunities for KB Financial and LabGenomics
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between 105560 and LabGenomics is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding KB Financial Group and LabGenomics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LabGenomics 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 LabGenomics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LabGenomics has no effect on the direction of KB Financial i.e., KB Financial and LabGenomics go up and down completely randomly.
Pair Corralation between KB Financial and LabGenomics
Assuming the 90 days trading horizon KB Financial Group is expected to generate 0.54 times more return on investment than LabGenomics. However, KB Financial Group is 1.87 times less risky than LabGenomics. It trades about 0.1 of its potential returns per unit of risk. LabGenomics Co is currently generating about 0.02 per unit of risk. If you would invest 4,491,592 in KB Financial Group on August 31, 2024 and sell it today you would earn a total of 5,128,408 from holding KB Financial Group or generate 114.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
KB Financial Group vs. LabGenomics Co
Performance |
| Timeline |
| KB Financial Group |
| LabGenomics |
KB Financial and LabGenomics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KB Financial and LabGenomics
The main advantage of trading using opposite KB Financial and LabGenomics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KB Financial position performs unexpectedly, LabGenomics 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 LabGenomics will offset losses from the drop in LabGenomics' long position.| KB Financial vs. Inzi Display CoLtd | KB Financial vs. Samsung Publishing Co | KB Financial vs. Pan Entertainment Co | KB Financial vs. Kaonmedia Co |
| LabGenomics vs. DreamCIS | LabGenomics vs. KB Financial Group | LabGenomics vs. Busan Industrial Co | LabGenomics vs. Busan Ind |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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