Correlation Between KB Financial and Imarketkorea
Can any of the company-specific risk be diversified away by investing in both KB Financial and Imarketkorea 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 Imarketkorea 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 Imarketkorea, you can compare the effects of market volatilities on KB Financial and Imarketkorea 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 Imarketkorea. Check out your portfolio center. Please also check ongoing floating volatility patterns of KB Financial and Imarketkorea.
Diversification Opportunities for KB Financial and Imarketkorea
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between 105560 and Imarketkorea is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding KB Financial Group and Imarketkorea in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Imarketkorea 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 Imarketkorea. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Imarketkorea has no effect on the direction of KB Financial i.e., KB Financial and Imarketkorea go up and down completely randomly.
Pair Corralation between KB Financial and Imarketkorea
If you would invest 8,684,136 in KB Financial Group on September 2, 2024 and sell it today you would earn a total of 935,864 from holding KB Financial Group or generate 10.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
KB Financial Group vs. Imarketkorea
Performance |
| Timeline |
| KB Financial Group |
| Imarketkorea |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
KB Financial and Imarketkorea Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KB Financial and Imarketkorea
The main advantage of trading using opposite KB Financial and Imarketkorea positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KB Financial position performs unexpectedly, Imarketkorea 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 Imarketkorea will offset losses from the drop in Imarketkorea's long position.| KB Financial vs. SS TECH | KB Financial vs. Eagle Veterinary Technology | KB Financial vs. Chin Yang Chemical | KB Financial vs. Shinsung Delta Tech |
| Imarketkorea vs. Daishin Information Communications | Imarketkorea vs. RF Materials Co | Imarketkorea vs. Phoenix Materials Co | Imarketkorea vs. Lotte Chilsung Beverage |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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