Correlation Between CDL INVESTMENT and KB Financial
Can any of the company-specific risk be diversified away by investing in both CDL INVESTMENT 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 CDL INVESTMENT and KB Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CDL INVESTMENT and KB Financial Group, you can compare the effects of market volatilities on CDL INVESTMENT 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 CDL INVESTMENT with a short position of KB Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of CDL INVESTMENT and KB Financial.
Diversification Opportunities for CDL INVESTMENT and KB Financial
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CDL and KBIA is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding CDL INVESTMENT 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 CDL INVESTMENT 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 CDL INVESTMENT 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 CDL INVESTMENT i.e., CDL INVESTMENT and KB Financial go up and down completely randomly.
Pair Corralation between CDL INVESTMENT and KB Financial
Assuming the 90 days trading horizon CDL INVESTMENT is expected to generate 4.75 times less return on investment than KB Financial. But when comparing it to its historical volatility, CDL INVESTMENT is 1.03 times less risky than KB Financial. It trades about 0.02 of its potential returns per unit of risk. KB Financial Group is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 3,226 in KB Financial Group on September 2, 2024 and sell it today you would earn a total of 3,374 from holding KB Financial Group or generate 104.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CDL INVESTMENT vs. KB Financial Group
Performance |
| Timeline |
| CDL INVESTMENT |
| KB Financial Group |
CDL INVESTMENT and KB Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CDL INVESTMENT and KB Financial
The main advantage of trading using opposite CDL INVESTMENT and KB Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CDL INVESTMENT 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.| CDL INVESTMENT vs. GREENX METALS LTD | CDL INVESTMENT vs. PLAYWAY SA ZY 10 | CDL INVESTMENT vs. ARDAGH METAL PACDL 0001 | CDL INVESTMENT vs. PLAY2CHILL SA ZY |
| KB Financial vs. The Trade Desk | KB Financial vs. FLOW TRADERS LTD | KB Financial vs. Ultra Clean Holdings | KB Financial vs. Auto Trader Group |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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