Correlation Between KB Financial and FLITTO
Can any of the company-specific risk be diversified away by investing in both KB Financial and FLITTO 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 FLITTO 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 FLITTO Inc, you can compare the effects of market volatilities on KB Financial and FLITTO 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 FLITTO. Check out your portfolio center. Please also check ongoing floating volatility patterns of KB Financial and FLITTO.
Diversification Opportunities for KB Financial and FLITTO
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between 105560 and FLITTO is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding KB Financial Group and FLITTO Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FLITTO Inc 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 FLITTO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FLITTO Inc has no effect on the direction of KB Financial i.e., KB Financial and FLITTO go up and down completely randomly.
Pair Corralation between KB Financial and FLITTO
Assuming the 90 days trading horizon KB Financial Group is expected to generate 0.51 times more return on investment than FLITTO. However, KB Financial Group is 1.96 times less risky than FLITTO. It trades about 0.09 of its potential returns per unit of risk. FLITTO Inc is currently generating about -0.05 per unit of risk. If you would invest 7,587,384 in KB Financial Group on September 3, 2024 and sell it today you would earn a total of 2,032,616 from holding KB Financial Group or generate 26.79% 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. FLITTO Inc
Performance |
| Timeline |
| KB Financial Group |
| FLITTO Inc |
KB Financial and FLITTO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KB Financial and FLITTO
The main advantage of trading using opposite KB Financial and FLITTO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KB Financial position performs unexpectedly, FLITTO 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 FLITTO will offset losses from the drop in FLITTO's long position.| KB Financial vs. Cuckoo Homesys Co | KB Financial vs. NICE Information Service | KB Financial vs. Hanjin Transportation Co | KB Financial vs. Lotte Data Communication |
| FLITTO vs. Kukdong Oil Chemicals | FLITTO vs. Chin Yang Chemical | FLITTO vs. Dongbang Transport Logistics | FLITTO vs. Miwon Chemical |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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