Correlation Between KB Financial and Sangsin Energy
Can any of the company-specific risk be diversified away by investing in both KB Financial and Sangsin Energy 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 Sangsin Energy 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 Sangsin Energy Display, you can compare the effects of market volatilities on KB Financial and Sangsin Energy 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 Sangsin Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of KB Financial and Sangsin Energy.
Diversification Opportunities for KB Financial and Sangsin Energy
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between 105560 and Sangsin is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding KB Financial Group and Sangsin Energy Display in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sangsin Energy Display 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 Sangsin Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sangsin Energy Display has no effect on the direction of KB Financial i.e., KB Financial and Sangsin Energy go up and down completely randomly.
Pair Corralation between KB Financial and Sangsin Energy
Assuming the 90 days trading horizon KB Financial Group is expected to under-perform the Sangsin Energy. But the stock apears to be less risky and, when comparing its historical volatility, KB Financial Group is 1.69 times less risky than Sangsin Energy. The stock trades about -0.28 of its potential returns per unit of risk. The Sangsin Energy Display is currently generating about 0.36 of returns per unit of risk over similar time horizon. If you would invest 714,000 in Sangsin Energy Display on November 27, 2024 and sell it today you would earn a total of 177,000 from holding Sangsin Energy Display or generate 24.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
KB Financial Group vs. Sangsin Energy Display
Performance |
| Timeline |
| KB Financial Group |
| Sangsin Energy Display |
KB Financial and Sangsin Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KB Financial and Sangsin Energy
The main advantage of trading using opposite KB Financial and Sangsin Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KB Financial position performs unexpectedly, Sangsin Energy 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 Sangsin Energy will offset losses from the drop in Sangsin Energy's long position.| KB Financial vs. Digital Power Communications | KB Financial vs. Display Tech Co | KB Financial vs. ECSTELECOM Co | KB Financial vs. Iljin Display |
| Sangsin Energy vs. Kyeryong Construction Industrial | Sangsin Energy vs. Formetal Co | Sangsin Energy vs. Choil Aluminum | Sangsin Energy vs. LEENO Industrial |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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