Correlation Between KB Financial and ITM Semiconductor
Can any of the company-specific risk be diversified away by investing in both KB Financial and ITM Semiconductor 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 ITM Semiconductor 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 ITM Semiconductor Co, you can compare the effects of market volatilities on KB Financial and ITM Semiconductor 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 ITM Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of KB Financial and ITM Semiconductor.
Diversification Opportunities for KB Financial and ITM Semiconductor
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between 105560 and ITM is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding KB Financial Group and ITM Semiconductor Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ITM Semiconductor 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 ITM Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ITM Semiconductor has no effect on the direction of KB Financial i.e., KB Financial and ITM Semiconductor go up and down completely randomly.
Pair Corralation between KB Financial and ITM Semiconductor
Assuming the 90 days trading horizon KB Financial Group is expected to generate 0.71 times more return on investment than ITM Semiconductor. However, KB Financial Group is 1.41 times less risky than ITM Semiconductor. It trades about 0.17 of its potential returns per unit of risk. ITM Semiconductor Co is currently generating about -0.37 per unit of risk. If you would invest 9,030,000 in KB Financial Group on September 1, 2024 and sell it today you would earn a total of 590,000 from holding KB Financial Group or generate 6.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
KB Financial Group vs. ITM Semiconductor Co
Performance |
| Timeline |
| KB Financial Group |
| ITM Semiconductor |
KB Financial and ITM Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KB Financial and ITM Semiconductor
The main advantage of trading using opposite KB Financial and ITM Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KB Financial position performs unexpectedly, ITM Semiconductor 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 ITM Semiconductor will offset losses from the drop in ITM Semiconductor's long position.| KB Financial vs. Korea Information Engineering | KB Financial vs. SCI Information Service | KB Financial vs. Atinum Investment Co | KB Financial vs. Samyung Trading Co |
| ITM Semiconductor vs. SK Hynix | ITM Semiconductor vs. LX Semicon Co | ITM Semiconductor vs. People Technology | ITM Semiconductor vs. SIMMTECH Co |
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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