Correlation Between KB Financial and Hypercharge Networks
Can any of the company-specific risk be diversified away by investing in both KB Financial and Hypercharge Networks 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 Hypercharge Networks 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 Hypercharge Networks Corp, you can compare the effects of market volatilities on KB Financial and Hypercharge Networks 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 Hypercharge Networks. Check out your portfolio center. Please also check ongoing floating volatility patterns of KB Financial and Hypercharge Networks.
Diversification Opportunities for KB Financial and Hypercharge Networks
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between KB Financial and Hypercharge is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding KB Financial Group and Hypercharge Networks Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hypercharge Networks 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 Hypercharge Networks. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hypercharge Networks Corp has no effect on the direction of KB Financial i.e., KB Financial and Hypercharge Networks go up and down completely randomly.
Pair Corralation between KB Financial and Hypercharge Networks
Allowing for the 90-day total investment horizon KB Financial Group is expected to generate 0.21 times more return on investment than Hypercharge Networks. However, KB Financial Group is 4.7 times less risky than Hypercharge Networks. It trades about 0.07 of its potential returns per unit of risk. Hypercharge Networks Corp is currently generating about -0.02 per unit of risk. If you would invest 3,668 in KB Financial Group on September 1, 2024 and sell it today you would earn a total of 3,225 from holding KB Financial Group or generate 87.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 96.57% |
| Values | Daily Returns |
KB Financial Group vs. Hypercharge Networks Corp
Performance |
| Timeline |
| KB Financial Group |
| Hypercharge Networks Corp |
KB Financial and Hypercharge Networks Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KB Financial and Hypercharge Networks
The main advantage of trading using opposite KB Financial and Hypercharge Networks positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KB Financial position performs unexpectedly, Hypercharge Networks 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 Hypercharge Networks will offset losses from the drop in Hypercharge Networks' long position.| KB Financial vs. Banco Santander Brasil | KB Financial vs. CrossFirst Bankshares | KB Financial vs. Banco Bradesco SA | KB Financial vs. CF Bankshares |
| Hypercharge Networks vs. Canlan Ice Sports | Hypercharge Networks vs. Sphere Entertainment Co | Hypercharge Networks vs. Avient Corp | Hypercharge Networks vs. CF Industries 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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