Correlation Between KB Financial and DukSan Neolux
Can any of the company-specific risk be diversified away by investing in both KB Financial and DukSan Neolux 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 DukSan Neolux 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 DukSan Neolux CoLtd, you can compare the effects of market volatilities on KB Financial and DukSan Neolux 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 DukSan Neolux. Check out your portfolio center. Please also check ongoing floating volatility patterns of KB Financial and DukSan Neolux.
Diversification Opportunities for KB Financial and DukSan Neolux
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between 105560 and DukSan is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding KB Financial Group and DukSan Neolux CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DukSan Neolux CoLtd 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 DukSan Neolux. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DukSan Neolux CoLtd has no effect on the direction of KB Financial i.e., KB Financial and DukSan Neolux go up and down completely randomly.
Pair Corralation between KB Financial and DukSan Neolux
Assuming the 90 days trading horizon KB Financial Group is expected to generate 0.72 times more return on investment than DukSan Neolux. However, KB Financial Group is 1.39 times less risky than DukSan Neolux. It trades about 0.11 of its potential returns per unit of risk. DukSan Neolux CoLtd is currently generating about -0.07 per unit of risk. If you would invest 9,390,000 in KB Financial Group on August 31, 2024 and sell it today you would earn a total of 410,000 from holding KB Financial Group or generate 4.37% 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. DukSan Neolux CoLtd
Performance |
| Timeline |
| KB Financial Group |
| DukSan Neolux CoLtd |
KB Financial and DukSan Neolux Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KB Financial and DukSan Neolux
The main advantage of trading using opposite KB Financial and DukSan Neolux positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KB Financial position performs unexpectedly, DukSan Neolux 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 DukSan Neolux will offset losses from the drop in DukSan Neolux's long position.| KB Financial vs. Inzi Display CoLtd | KB Financial vs. Samsung Publishing Co | KB Financial vs. Pan Entertainment Co | KB Financial vs. Kaonmedia Co |
| DukSan Neolux vs. LG Chem | DukSan Neolux vs. Chunbo Co | DukSan Neolux vs. Hyosung Chemical Corp | DukSan Neolux vs. LIG ES SPAC |
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 Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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