Correlation Between InterContinental and KB Financial
Can any of the company-specific risk be diversified away by investing in both InterContinental 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 InterContinental and KB Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between InterContinental Hotels Group and KB Financial Group, you can compare the effects of market volatilities on InterContinental 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 InterContinental with a short position of KB Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of InterContinental and KB Financial.
Diversification Opportunities for InterContinental and KB Financial
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between InterContinental and KBIA is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding InterContinental Hotels Group 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 InterContinental 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 InterContinental Hotels Group 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 InterContinental i.e., InterContinental and KB Financial go up and down completely randomly.
Pair Corralation between InterContinental and KB Financial
Assuming the 90 days trading horizon InterContinental Hotels Group is expected to generate 0.59 times more return on investment than KB Financial. However, InterContinental Hotels Group is 1.68 times less risky than KB Financial. It trades about 0.12 of its potential returns per unit of risk. KB Financial Group is currently generating about 0.04 per unit of risk. If you would invest 5,620 in InterContinental Hotels Group on September 30, 2024 and sell it today you would earn a total of 6,380 from holding InterContinental Hotels Group or generate 113.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
InterContinental Hotels Group vs. KB Financial Group
Performance |
| Timeline |
| InterContinental Hotels |
| KB Financial Group |
InterContinental and KB Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with InterContinental and KB Financial
The main advantage of trading using opposite InterContinental and KB Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if InterContinental 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.| InterContinental vs. Marriott International | InterContinental vs. H World Group | InterContinental vs. Hyatt Hotels | InterContinental vs. INTERCONT HOTELS |
| KB Financial vs. Food Life Companies | KB Financial vs. MEDICAL FACILITIES NEW | KB Financial vs. Japan Medical Dynamic | KB Financial vs. AVITA Medical |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |