Correlation Between KB Financial and BioNTech

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Can any of the company-specific risk be diversified away by investing in both KB Financial and BioNTech 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 BioNTech 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 BioNTech SE, you can compare the effects of market volatilities on KB Financial and BioNTech 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 BioNTech. Check out your portfolio center. Please also check ongoing floating volatility patterns of KB Financial and BioNTech.

Diversification Opportunities for KB Financial and BioNTech

KB FinancialBioNTechDiversified AwayKB FinancialBioNTechDiversified Away100%
-0.26
  Correlation Coefficient

Very good diversification

The 3 months correlation between KB Financial and BioNTech is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding KB Financial Group and BioNTech SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BioNTech SE 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 BioNTech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BioNTech SE has no effect on the direction of KB Financial i.e., KB Financial and BioNTech go up and down completely randomly.

Pair Corralation between KB Financial and BioNTech

Allowing for the 90-day total investment horizon KB Financial Group is expected to generate 0.81 times more return on investment than BioNTech. However, KB Financial Group is 1.23 times less risky than BioNTech. It trades about 0.06 of its potential returns per unit of risk. BioNTech SE is currently generating about 0.0 per unit of risk. If you would invest  3,494  in KB Financial Group on November 26, 2024 and sell it today you would earn a total of  2,209  from holding KB Financial Group or generate 63.22% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

KB Financial Group  vs.  BioNTech SE

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -10-505101520
JavaScript chart by amCharts 3.21.15KB BNTX
       Timeline  
KB Financial Group 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days KB Financial Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's fundamental drivers remain somewhat strong which may send shares a bit higher in March 2025. The current disturbance may also be a sign of long term up-swing for the company investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb565860626466687072
BioNTech SE 

Risk-Adjusted Performance

Weak

 
Weak
 
Strong
Over the last 90 days BioNTech SE has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, BioNTech is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb110115120125130

KB Financial and BioNTech Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-3.33-2.5-1.66-0.82-0.01290.751.522.293.073.84 0.040.050.060.070.080.09
JavaScript chart by amCharts 3.21.15KB BNTX
       Returns  

Pair Trading with KB Financial and BioNTech

The main advantage of trading using opposite KB Financial and BioNTech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KB Financial position performs unexpectedly, BioNTech 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 BioNTech will offset losses from the drop in BioNTech's long position.
The idea behind KB Financial Group and BioNTech SE pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.

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