Correlation Between Hartford Financial and KB Financial
Can any of the company-specific risk be diversified away by investing in both Hartford Financial 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 Hartford Financial and KB Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Hartford Financial and KB Financial Group, you can compare the effects of market volatilities on Hartford Financial 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 Hartford Financial with a short position of KB Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hartford Financial and KB Financial.
Diversification Opportunities for Hartford Financial and KB Financial
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Hartford and K1BF34 is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding The Hartford Financial 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 Hartford Financial 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 The Hartford Financial 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 Hartford Financial i.e., Hartford Financial and KB Financial go up and down completely randomly.
Pair Corralation between Hartford Financial and KB Financial
If you would invest 8,919 in KB Financial Group on November 4, 2024 and sell it today you would earn a total of 549.00 from holding KB Financial Group or generate 6.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
The Hartford Financial vs. KB Financial Group
Performance |
| Timeline |
| The Hartford Financial |
| KB Financial Group |
Hartford Financial and KB Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hartford Financial and KB Financial
The main advantage of trading using opposite Hartford Financial and KB Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hartford Financial 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.| Hartford Financial vs. Costco Wholesale | Hartford Financial vs. Electronic Arts | Hartford Financial vs. Cardinal Health, | Hartford Financial vs. METISA Metalrgica Timboense |
| KB Financial vs. Paycom Software | KB Financial vs. Guidewire Software, | KB Financial vs. Tyson Foods | KB Financial vs. Monster Beverage |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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