Correlation Between KB Financial and Aravive
Can any of the company-specific risk be diversified away by investing in both KB Financial and Aravive 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 Aravive 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 Aravive, you can compare the effects of market volatilities on KB Financial and Aravive 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 Aravive. Check out your portfolio center. Please also check ongoing floating volatility patterns of KB Financial and Aravive.
Diversification Opportunities for KB Financial and Aravive
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between KB Financial and Aravive is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding KB Financial Group and Aravive in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aravive 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 Aravive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aravive has no effect on the direction of KB Financial i.e., KB Financial and Aravive go up and down completely randomly.
Pair Corralation between KB Financial and Aravive
If you would invest 6,879 in KB Financial Group on August 28, 2024 and sell it today you would earn a total of 97.00 from holding KB Financial Group or generate 1.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
KB Financial Group vs. Aravive
Performance |
| Timeline |
| KB Financial Group |
| Aravive |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
KB Financial and Aravive Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KB Financial and Aravive
The main advantage of trading using opposite KB Financial and Aravive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KB Financial position performs unexpectedly, Aravive 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 Aravive will offset losses from the drop in Aravive's long position.| KB Financial vs. Banco Santander Brasil | KB Financial vs. CrossFirst Bankshares | KB Financial vs. Banco Bradesco SA | KB Financial vs. CF Bankshares |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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