Correlation Between KB Financial and Cue Biopharma
Can any of the company-specific risk be diversified away by investing in both KB Financial and Cue Biopharma 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 Cue Biopharma 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 Cue Biopharma, you can compare the effects of market volatilities on KB Financial and Cue Biopharma 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 Cue Biopharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of KB Financial and Cue Biopharma.
Diversification Opportunities for KB Financial and Cue Biopharma
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between KB Financial and Cue is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding KB Financial Group and Cue Biopharma in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cue Biopharma 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 Cue Biopharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cue Biopharma has no effect on the direction of KB Financial i.e., KB Financial and Cue Biopharma go up and down completely randomly.
Pair Corralation between KB Financial and Cue Biopharma
Allowing for the 90-day total investment horizon KB Financial Group is expected to generate 0.22 times more return on investment than Cue Biopharma. However, KB Financial Group is 4.55 times less risky than Cue Biopharma. It trades about 0.02 of its potential returns per unit of risk. Cue Biopharma is currently generating about -0.26 per unit of risk. If you would invest 6,879 in KB Financial Group on August 29, 2024 and sell it today you would earn a total of 39.00 from holding KB Financial Group or generate 0.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
KB Financial Group vs. Cue Biopharma
Performance |
| Timeline |
| KB Financial Group |
| Cue Biopharma |
KB Financial and Cue Biopharma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KB Financial and Cue Biopharma
The main advantage of trading using opposite KB Financial and Cue Biopharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KB Financial position performs unexpectedly, Cue Biopharma 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 Cue Biopharma will offset losses from the drop in Cue Biopharma'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 |
| Cue Biopharma vs. Coya Therapeutics, Common | Cue Biopharma vs. Lantern Pharma | Cue Biopharma vs. Fennec Pharmaceuticals | Cue Biopharma vs. Eliem 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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