Correlation Between KB Financial and MetaLabs
Can any of the company-specific risk be diversified away by investing in both KB Financial and MetaLabs 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 MetaLabs 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 MetaLabs Co, you can compare the effects of market volatilities on KB Financial and MetaLabs 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 MetaLabs. Check out your portfolio center. Please also check ongoing floating volatility patterns of KB Financial and MetaLabs.
Diversification Opportunities for KB Financial and MetaLabs
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between 105560 and MetaLabs is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding KB Financial Group and MetaLabs Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MetaLabs 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 MetaLabs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MetaLabs has no effect on the direction of KB Financial i.e., KB Financial and MetaLabs go up and down completely randomly.
Pair Corralation between KB Financial and MetaLabs
Assuming the 90 days trading horizon KB Financial is expected to generate 1.57 times less return on investment than MetaLabs. But when comparing it to its historical volatility, KB Financial Group is 1.27 times less risky than MetaLabs. It trades about 0.1 of its potential returns per unit of risk. MetaLabs Co is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 132,000 in MetaLabs Co on October 23, 2024 and sell it today you would earn a total of 4,300 from holding MetaLabs Co or generate 3.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
KB Financial Group vs. MetaLabs Co
Performance |
| Timeline |
| KB Financial Group |
| MetaLabs |
KB Financial and MetaLabs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KB Financial and MetaLabs
The main advantage of trading using opposite KB Financial and MetaLabs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KB Financial position performs unexpectedly, MetaLabs 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 MetaLabs will offset losses from the drop in MetaLabs' long position.| KB Financial vs. Daishin Information Communications | KB Financial vs. Samwha Electronics Co | KB Financial vs. Shinil Electronics Co | KB Financial vs. Samji Electronics Co |
| MetaLabs vs. KB Financial Group | MetaLabs vs. Shinhan Financial Group | MetaLabs vs. Hana Financial | MetaLabs vs. Woori Financial Group |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |