Correlation Between KB Financial and Tykhe Corp
Can any of the company-specific risk be diversified away by investing in both KB Financial and Tykhe Corp 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 Tykhe Corp 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 Tykhe Corp, you can compare the effects of market volatilities on KB Financial and Tykhe Corp 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 Tykhe Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of KB Financial and Tykhe Corp.
Diversification Opportunities for KB Financial and Tykhe Corp
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between KB Financial and Tykhe is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding KB Financial Group and Tykhe Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tykhe 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 Tykhe Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tykhe Corp has no effect on the direction of KB Financial i.e., KB Financial and Tykhe Corp go up and down completely randomly.
Pair Corralation between KB Financial and Tykhe Corp
Allowing for the 90-day total investment horizon KB Financial Group is expected to generate 0.19 times more return on investment than Tykhe Corp. However, KB Financial Group is 5.38 times less risky than Tykhe Corp. It trades about 0.13 of its potential returns per unit of risk. Tykhe Corp is currently generating about -0.04 per unit of risk. 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 | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
KB Financial Group vs. Tykhe Corp
Performance |
| Timeline |
| KB Financial Group |
| Tykhe Corp |
KB Financial and Tykhe Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KB Financial and Tykhe Corp
The main advantage of trading using opposite KB Financial and Tykhe Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KB Financial position performs unexpectedly, Tykhe Corp 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 Tykhe Corp will offset losses from the drop in Tykhe Corp'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 |
| Tykhe Corp vs. Rigel Pharmaceuticals | Tykhe Corp vs. Geron | Tykhe Corp vs. Verastem | Tykhe Corp vs. Immutep Ltd ADR |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |