Correlation Between KB Financial and First State
Can any of the company-specific risk be diversified away by investing in both KB Financial and First State 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 First State 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 First State Financial, you can compare the effects of market volatilities on KB Financial and First State 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 First State. Check out your portfolio center. Please also check ongoing floating volatility patterns of KB Financial and First State.
Diversification Opportunities for KB Financial and First State
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between KB Financial and First is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding KB Financial Group and First State Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First State 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 First State. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First State Financial has no effect on the direction of KB Financial i.e., KB Financial and First State go up and down completely randomly.
Pair Corralation between KB Financial and First State
Allowing for the 90-day total investment horizon KB Financial Group is expected to generate 0.09 times more return on investment than First State. However, KB Financial Group is 10.72 times less risky than First State. It trades about 0.09 of its potential returns per unit of risk. First State Financial is currently generating about -0.03 per unit of risk. If you would invest 8,581 in KB Financial Group on October 16, 2025 and sell it today you would earn a total of 249.00 from holding KB Financial Group or generate 2.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
KB Financial Group vs. First State Financial
Performance |
| Timeline |
| KB Financial Group |
| First State Financial |
KB Financial and First State Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KB Financial and First State
The main advantage of trading using opposite KB Financial and First State positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KB Financial position performs unexpectedly, First State 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 First State will offset losses from the drop in First State's long position.| KB Financial vs. US Bancorp | KB Financial vs. Truist Financial Corp | KB Financial vs. Fifth Third Bancorp | KB Financial vs. MT Bank |
| First State vs. First Republic Bank | First State vs. BioCube | First State vs. Trend Exploration I | First State vs. Eastern Goldfields |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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