Correlation Between Salesforce and KB Financial
Can any of the company-specific risk be diversified away by investing in both Salesforce 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 Salesforce and KB Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Salesforce and KB Financial Group, you can compare the effects of market volatilities on Salesforce 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 Salesforce with a short position of KB Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Salesforce and KB Financial.
Diversification Opportunities for Salesforce and KB Financial
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Salesforce and KBIA is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Salesforce 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 Salesforce 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 Salesforce 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 Salesforce i.e., Salesforce and KB Financial go up and down completely randomly.
Pair Corralation between Salesforce and KB Financial
Considering the 90-day investment horizon Salesforce is expected to generate 0.64 times more return on investment than KB Financial. However, Salesforce is 1.56 times less risky than KB Financial. It trades about 0.3 of its potential returns per unit of risk. KB Financial Group is currently generating about 0.13 per unit of risk. If you would invest 27,664 in Salesforce on August 28, 2024 and sell it today you would earn a total of 6,654 from holding Salesforce or generate 24.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Salesforce vs. KB Financial Group
Performance |
| Timeline |
| Salesforce |
| KB Financial Group |
Salesforce and KB Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Salesforce and KB Financial
The main advantage of trading using opposite Salesforce and KB Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Salesforce 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.| Salesforce vs. Zoom Video Communications | Salesforce vs. C3 Ai Inc | Salesforce vs. Shopify | Salesforce vs. Workday |
| KB Financial vs. GOLD ROAD RES | KB Financial vs. ECHO INVESTMENT ZY | KB Financial vs. Air Transport Services | KB Financial vs. TITANIUM TRANSPORTGROUP |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |