Correlation Between KB Financial and Hartford Financial
Can any of the company-specific risk be diversified away by investing in both KB Financial and Hartford 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 KB Financial and Hartford Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KB Financial Group and The Hartford Financial, you can compare the effects of market volatilities on KB Financial and Hartford 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 KB Financial with a short position of Hartford Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of KB Financial and Hartford Financial.
Diversification Opportunities for KB Financial and Hartford Financial
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between K1BF34 and Hartford is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding KB Financial Group and The Hartford Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on The Hartford Financial and KB 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 KB Financial Group are associated (or correlated) with Hartford Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of The Hartford Financial has no effect on the direction of KB Financial i.e., KB Financial and Hartford Financial go up and down completely randomly.
Pair Corralation between KB Financial and Hartford 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 | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
KB Financial Group vs. The Hartford Financial
Performance |
| Timeline |
| KB Financial Group |
| The Hartford Financial |
KB Financial and Hartford Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KB Financial and Hartford Financial
The main advantage of trading using opposite KB Financial and Hartford Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KB Financial position performs unexpectedly, Hartford 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 Hartford Financial will offset losses from the drop in Hartford Financial's long position.| KB Financial vs. Paycom Software | KB Financial vs. Guidewire Software, | KB Financial vs. Tyson Foods | KB Financial vs. Monster Beverage |
| Hartford Financial vs. Costco Wholesale | Hartford Financial vs. Electronic Arts | Hartford Financial vs. Cardinal Health, | Hartford Financial vs. METISA Metalrgica Timboense |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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