Correlation Between KB Financial and Biodesix
Can any of the company-specific risk be diversified away by investing in both KB Financial and Biodesix 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 Biodesix 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 Biodesix, you can compare the effects of market volatilities on KB Financial and Biodesix 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 Biodesix. Check out your portfolio center. Please also check ongoing floating volatility patterns of KB Financial and Biodesix.
Diversification Opportunities for KB Financial and Biodesix
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between KB Financial and Biodesix is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding KB Financial Group and Biodesix in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Biodesix 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 Biodesix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Biodesix has no effect on the direction of KB Financial i.e., KB Financial and Biodesix go up and down completely randomly.
Pair Corralation between KB Financial and Biodesix
Allowing for the 90-day total investment horizon KB Financial Group is expected to generate 0.44 times more return on investment than Biodesix. However, KB Financial Group is 2.29 times less risky than Biodesix. It trades about 0.08 of its potential returns per unit of risk. Biodesix is currently generating about 0.02 per unit of risk. If you would invest 3,470 in KB Financial Group on August 28, 2024 and sell it today you would earn a total of 3,506 from holding KB Financial Group or generate 101.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
KB Financial Group vs. Biodesix
Performance |
| Timeline |
| KB Financial Group |
| Biodesix |
KB Financial and Biodesix Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KB Financial and Biodesix
The main advantage of trading using opposite KB Financial and Biodesix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KB Financial position performs unexpectedly, Biodesix 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 Biodesix will offset losses from the drop in Biodesix's long position.| KB Financial vs. Shinhan Financial Group | KB Financial vs. Woori Financial Group | KB Financial vs. Korea Electric Power | KB Financial vs. Orix Corp Ads |
| Biodesix vs. Aclaris Therapeutics | Biodesix vs. Castle Biosciences | Biodesix vs. Prenetics Global | Biodesix vs. DarioHealth Corp |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |