Correlation Between KB Financial and CHEMTRONICSCOLtd
Can any of the company-specific risk be diversified away by investing in both KB Financial and CHEMTRONICSCOLtd 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 CHEMTRONICSCOLtd 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 CHEMTRONICSCOLtd, you can compare the effects of market volatilities on KB Financial and CHEMTRONICSCOLtd 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 CHEMTRONICSCOLtd. Check out your portfolio center. Please also check ongoing floating volatility patterns of KB Financial and CHEMTRONICSCOLtd.
Diversification Opportunities for KB Financial and CHEMTRONICSCOLtd
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between 105560 and CHEMTRONICSCOLtd is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding KB Financial Group and CHEMTRONICSCOLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CHEMTRONICSCOLtd 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 CHEMTRONICSCOLtd. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CHEMTRONICSCOLtd has no effect on the direction of KB Financial i.e., KB Financial and CHEMTRONICSCOLtd go up and down completely randomly.
Pair Corralation between KB Financial and CHEMTRONICSCOLtd
Assuming the 90 days trading horizon KB Financial Group is expected to generate 0.69 times more return on investment than CHEMTRONICSCOLtd. However, KB Financial Group is 1.45 times less risky than CHEMTRONICSCOLtd. It trades about 0.08 of its potential returns per unit of risk. CHEMTRONICSCOLtd is currently generating about -0.03 per unit of risk. If you would invest 4,516,251 in KB Financial Group on September 12, 2024 and sell it today you would earn a total of 3,813,749 from holding KB Financial Group or generate 84.45% 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. CHEMTRONICSCOLtd
Performance |
| Timeline |
| KB Financial Group |
| CHEMTRONICSCOLtd |
KB Financial and CHEMTRONICSCOLtd Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KB Financial and CHEMTRONICSCOLtd
The main advantage of trading using opposite KB Financial and CHEMTRONICSCOLtd positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KB Financial position performs unexpectedly, CHEMTRONICSCOLtd 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 CHEMTRONICSCOLtd will offset losses from the drop in CHEMTRONICSCOLtd'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 |
| CHEMTRONICSCOLtd vs. Ecoplastic | CHEMTRONICSCOLtd vs. RF Materials Co | CHEMTRONICSCOLtd vs. Incar Financial Service | CHEMTRONICSCOLtd vs. Korean Reinsurance 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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