Correlation Between Shinhan Inverse and KB Financial
Can any of the company-specific risk be diversified away by investing in both Shinhan Inverse 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 Shinhan Inverse and KB Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shinhan Inverse Silver and KB Financial Group, you can compare the effects of market volatilities on Shinhan Inverse 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 Shinhan Inverse with a short position of KB Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shinhan Inverse and KB Financial.
Diversification Opportunities for Shinhan Inverse and KB Financial
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Shinhan and 105560 is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Shinhan Inverse Silver 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 Shinhan Inverse 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 Shinhan Inverse Silver 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 Shinhan Inverse i.e., Shinhan Inverse and KB Financial go up and down completely randomly.
Pair Corralation between Shinhan Inverse and KB Financial
Assuming the 90 days trading horizon Shinhan Inverse Silver is expected to under-perform the KB Financial. But the stock apears to be less risky and, when comparing its historical volatility, Shinhan Inverse Silver is 1.41 times less risky than KB Financial. The stock trades about -0.01 of its potential returns per unit of risk. The KB Financial Group is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 7,773,143 in KB Financial Group on September 25, 2024 and sell it today you would earn a total of 926,857 from holding KB Financial Group or generate 11.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.52% |
| Values | Daily Returns |
Shinhan Inverse Silver vs. KB Financial Group
Performance |
| Timeline |
| Shinhan Inverse Silver |
| KB Financial Group |
Shinhan Inverse and KB Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shinhan Inverse and KB Financial
The main advantage of trading using opposite Shinhan Inverse and KB Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shinhan Inverse 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.| Shinhan Inverse vs. Kisan Telecom Co | Shinhan Inverse vs. Lotte Data Communication | Shinhan Inverse vs. Seoul Electronics Telecom | Shinhan Inverse vs. FOODWELL Co |
| KB Financial vs. Shinhan Financial Group | KB Financial vs. Hyundai Motor | KB Financial vs. Hyundai Motor Co | KB Financial vs. Hyundai Motor 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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