Correlation Between KB Financial and ABOV Semiconductor
Can any of the company-specific risk be diversified away by investing in both KB Financial and ABOV 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 ABOV 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 ABOV Semiconductor Co, you can compare the effects of market volatilities on KB Financial and ABOV 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 ABOV Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of KB Financial and ABOV Semiconductor.
Diversification Opportunities for KB Financial and ABOV Semiconductor
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between 105560 and ABOV is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding KB Financial Group and ABOV Semiconductor Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ABOV 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 ABOV Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ABOV Semiconductor has no effect on the direction of KB Financial i.e., KB Financial and ABOV Semiconductor go up and down completely randomly.
Pair Corralation between KB Financial and ABOV Semiconductor
Assuming the 90 days trading horizon KB Financial Group is expected to generate 0.98 times more return on investment than ABOV Semiconductor. However, KB Financial Group is 1.02 times less risky than ABOV Semiconductor. It trades about 0.07 of its potential returns per unit of risk. ABOV Semiconductor Co is currently generating about -0.2 per unit of risk. If you would invest 7,733,535 in KB Financial Group on September 12, 2024 and sell it today you would earn a total of 806,465 from holding KB Financial Group or generate 10.43% 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. ABOV Semiconductor Co
Performance |
| Timeline |
| KB Financial Group |
| ABOV Semiconductor |
KB Financial and ABOV Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KB Financial and ABOV Semiconductor
The main advantage of trading using opposite KB Financial and ABOV Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KB Financial position performs unexpectedly, ABOV 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 ABOV Semiconductor will offset losses from the drop in ABOV Semiconductor'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 |
| ABOV Semiconductor vs. Cube Entertainment | ABOV Semiconductor vs. Dreamus Company | ABOV Semiconductor vs. LG Energy Solution | ABOV Semiconductor vs. Dongwon System |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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