Correlation Between KB Financial and Flagstar Financial,
Can any of the company-specific risk be diversified away by investing in both KB Financial and Flagstar 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 Flagstar 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 Flagstar Financial,, you can compare the effects of market volatilities on KB Financial and Flagstar 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 Flagstar Financial,. Check out your portfolio center. Please also check ongoing floating volatility patterns of KB Financial and Flagstar Financial,.
Diversification Opportunities for KB Financial and Flagstar Financial,
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between KB Financial and Flagstar is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding KB Financial Group and Flagstar Financial, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Flagstar Financial, 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 Flagstar Financial,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Flagstar Financial, has no effect on the direction of KB Financial i.e., KB Financial and Flagstar Financial, go up and down completely randomly.
Pair Corralation between KB Financial and Flagstar Financial,
Allowing for the 90-day total investment horizon KB Financial is expected to generate 3.47 times less return on investment than Flagstar Financial,. But when comparing it to its historical volatility, KB Financial Group is 2.36 times less risky than Flagstar Financial,. It trades about 0.13 of its potential returns per unit of risk. Flagstar Financial, is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 1,039 in Flagstar Financial, on September 2, 2024 and sell it today you would earn a total of 158.00 from holding Flagstar Financial, or generate 15.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
KB Financial Group vs. Flagstar Financial,
Performance |
| Timeline |
| KB Financial Group |
| Flagstar Financial, |
KB Financial and Flagstar Financial, Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KB Financial and Flagstar Financial,
The main advantage of trading using opposite KB Financial and Flagstar Financial, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KB Financial position performs unexpectedly, Flagstar 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 Flagstar Financial, will offset losses from the drop in Flagstar 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 |
| Flagstar Financial, vs. Axos Financial | Flagstar Financial, vs. Byline Bancorp | Flagstar Financial, vs. KB Financial Group | Flagstar Financial, vs. Nu Holdings |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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