Correlation Between BNK Financial and SBI Investment
Can any of the company-specific risk be diversified away by investing in both BNK Financial and SBI Investment 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 BNK Financial and SBI Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BNK Financial Group and SBI Investment KOREA, you can compare the effects of market volatilities on BNK Financial and SBI Investment 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 BNK Financial with a short position of SBI Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of BNK Financial and SBI Investment.
Diversification Opportunities for BNK Financial and SBI Investment
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between BNK and SBI is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding BNK Financial Group and SBI Investment KOREA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SBI Investment KOREA and BNK 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 BNK Financial Group are associated (or correlated) with SBI Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SBI Investment KOREA has no effect on the direction of BNK Financial i.e., BNK Financial and SBI Investment go up and down completely randomly.
Pair Corralation between BNK Financial and SBI Investment
Assuming the 90 days trading horizon BNK Financial Group is expected to generate 0.59 times more return on investment than SBI Investment. However, BNK Financial Group is 1.69 times less risky than SBI Investment. It trades about 0.31 of its potential returns per unit of risk. SBI Investment KOREA is currently generating about 0.11 per unit of risk. If you would invest 944,000 in BNK Financial Group on September 1, 2024 and sell it today you would earn a total of 112,000 from holding BNK Financial Group or generate 11.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BNK Financial Group vs. SBI Investment KOREA
Performance |
| Timeline |
| BNK Financial Group |
| SBI Investment KOREA |
BNK Financial and SBI Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BNK Financial and SBI Investment
The main advantage of trading using opposite BNK Financial and SBI Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BNK Financial position performs unexpectedly, SBI Investment 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 SBI Investment will offset losses from the drop in SBI Investment's long position.| BNK Financial vs. Samsung Electronics Co | BNK Financial vs. Samsung Electronics Co | BNK Financial vs. KB Financial Group | BNK Financial vs. Shinhan Financial Group |
| SBI Investment vs. Ssangyong Information Communication | SBI Investment vs. Sejong Telecom | SBI Investment vs. Wireless Power Amplifier | SBI Investment vs. Daishin Information Communications |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |