Correlation Between BIONTECH and KB Financial
Can any of the company-specific risk be diversified away by investing in both BIONTECH 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 BIONTECH and KB Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BIONTECH SE DRN and KB Financial Group, you can compare the effects of market volatilities on BIONTECH 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 BIONTECH with a short position of KB Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of BIONTECH and KB Financial.
Diversification Opportunities for BIONTECH and KB Financial
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BIONTECH and K1BF34 is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding BIONTECH SE DRN 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 BIONTECH 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 BIONTECH SE DRN 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 BIONTECH i.e., BIONTECH and KB Financial go up and down completely randomly.
Pair Corralation between BIONTECH and KB Financial
Assuming the 90 days trading horizon BIONTECH SE DRN is expected to under-perform the KB Financial. In addition to that, BIONTECH is 1.59 times more volatile than KB Financial Group. It trades about -0.07 of its total potential returns per unit of risk. KB Financial Group is currently generating about -0.02 per unit of volatility. If you would invest 8,989 in KB Financial Group on November 5, 2024 and sell it today you would lose (79.00) from holding KB Financial Group or give up 0.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BIONTECH SE DRN vs. KB Financial Group
Performance |
| Timeline |
| BIONTECH SE DRN |
| KB Financial Group |
BIONTECH and KB Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BIONTECH and KB Financial
The main advantage of trading using opposite BIONTECH and KB Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BIONTECH 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.| BIONTECH vs. Paycom Software | BIONTECH vs. Charter Communications | BIONTECH vs. Guidewire Software, | BIONTECH vs. United Airlines Holdings |
| KB Financial vs. Taiwan Semiconductor Manufacturing | KB Financial vs. Apple Inc | KB Financial vs. Alibaba Group Holding | KB Financial vs. Microsoft |
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.
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