Correlation Between KB Financial and Equitable Financial
Can any of the company-specific risk be diversified away by investing in both KB Financial and Equitable Financial 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 Equitable Financial 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 Equitable Financial Corp, you can compare the effects of market volatilities on KB Financial and Equitable Financial 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 Equitable Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of KB Financial and Equitable Financial.
Diversification Opportunities for KB Financial and Equitable Financial
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between KB Financial and Equitable is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding KB Financial Group and Equitable Financial Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Equitable Financial Corp 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 Equitable Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Equitable Financial Corp has no effect on the direction of KB Financial i.e., KB Financial and Equitable Financial go up and down completely randomly.
Pair Corralation between KB Financial and Equitable Financial
If you would invest 6,608 in KB Financial Group on September 2, 2024 and sell it today you would earn a total of 285.00 from holding KB Financial Group or generate 4.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
KB Financial Group vs. Equitable Financial Corp
Performance |
| Timeline |
| KB Financial Group |
| Equitable Financial Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
KB Financial and Equitable Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KB Financial and Equitable Financial
The main advantage of trading using opposite KB Financial and Equitable Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KB Financial position performs unexpectedly, Equitable Financial 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 Equitable Financial will offset losses from the drop in Equitable Financial'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 |
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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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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