Correlation Between KB Financial and Bluebird Bio
Can any of the company-specific risk be diversified away by investing in both KB Financial and Bluebird Bio 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 Bluebird Bio 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 Bluebird bio, you can compare the effects of market volatilities on KB Financial and Bluebird Bio 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 Bluebird Bio. Check out your portfolio center. Please also check ongoing floating volatility patterns of KB Financial and Bluebird Bio.
Diversification Opportunities for KB Financial and Bluebird Bio
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between KB Financial and Bluebird is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding KB Financial Group and Bluebird bio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bluebird bio 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 Bluebird Bio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bluebird bio has no effect on the direction of KB Financial i.e., KB Financial and Bluebird Bio go up and down completely randomly.
Pair Corralation between KB Financial and Bluebird Bio
Allowing for the 90-day total investment horizon KB Financial Group is expected to generate 0.26 times more return on investment than Bluebird Bio. However, KB Financial Group is 3.89 times less risky than Bluebird Bio. It trades about 0.15 of its potential returns per unit of risk. Bluebird bio is currently generating about -0.15 per unit of risk. If you would invest 6,734 in KB Financial Group on August 31, 2024 and sell it today you would earn a total of 345.00 from holding KB Financial Group or generate 5.12% 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. Bluebird bio
Performance |
| Timeline |
| KB Financial Group |
| Bluebird bio |
KB Financial and Bluebird Bio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KB Financial and Bluebird Bio
The main advantage of trading using opposite KB Financial and Bluebird Bio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KB Financial position performs unexpectedly, Bluebird Bio 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 Bluebird Bio will offset losses from the drop in Bluebird Bio'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 |
| Bluebird Bio vs. Mersana Therapeutics | Bluebird Bio vs. Zentalis Pharmaceuticals Llc | Bluebird Bio vs. Y mAbs Therapeutics | Bluebird Bio vs. Travere Therapeutics |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |