Correlation Between Cuckoo Electronics and KB Financial
Can any of the company-specific risk be diversified away by investing in both Cuckoo Electronics and KB Financial 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 Cuckoo Electronics and KB Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cuckoo Electronics Co and KB Financial Group, you can compare the effects of market volatilities on Cuckoo Electronics and KB Financial 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 Cuckoo Electronics with a short position of KB Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cuckoo Electronics and KB Financial.
Diversification Opportunities for Cuckoo Electronics and KB Financial
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Cuckoo and 105560 is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Cuckoo Electronics Co and KB Financial Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KB Financial Group and Cuckoo Electronics 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 Cuckoo Electronics Co are associated (or correlated) with KB Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KB Financial Group has no effect on the direction of Cuckoo Electronics i.e., Cuckoo Electronics and KB Financial go up and down completely randomly.
Pair Corralation between Cuckoo Electronics and KB Financial
Assuming the 90 days trading horizon Cuckoo Electronics Co is expected to under-perform the KB Financial. But the stock apears to be less risky and, when comparing its historical volatility, Cuckoo Electronics Co is 1.07 times less risky than KB Financial. The stock trades about -0.06 of its potential returns per unit of risk. The KB Financial Group is currently generating about 0.45 of returns per unit of risk over similar time horizon. If you would invest 8,340,000 in KB Financial Group on November 3, 2024 and sell it today you would earn a total of 830,000 from holding KB Financial Group or generate 9.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cuckoo Electronics Co vs. KB Financial Group
Performance |
| Timeline |
| Cuckoo Electronics |
| KB Financial Group |
Cuckoo Electronics and KB Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cuckoo Electronics and KB Financial
The main advantage of trading using opposite Cuckoo Electronics and KB Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cuckoo Electronics position performs unexpectedly, KB Financial 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 KB Financial will offset losses from the drop in KB Financial's long position.| Cuckoo Electronics vs. Samyang Foods Co | Cuckoo Electronics vs. Foodnamoo | Cuckoo Electronics vs. Ecoplastic | Cuckoo Electronics vs. Sam Yang Foods |
| KB Financial vs. Cloud Air CoLtd | KB Financial vs. Korea Investment Holdings | KB Financial vs. SBI Investment KOREA | KB Financial vs. Innowireless Co |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |