Correlation Between KB Financial and Kurita Water
Can any of the company-specific risk be diversified away by investing in both KB Financial and Kurita Water 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 Kurita Water 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 Kurita Water Industries, you can compare the effects of market volatilities on KB Financial and Kurita Water 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 Kurita Water. Check out your portfolio center. Please also check ongoing floating volatility patterns of KB Financial and Kurita Water.
Diversification Opportunities for KB Financial and Kurita Water
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between KB Financial and Kurita is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding KB Financial Group and Kurita Water Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kurita Water Industries 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 Kurita Water. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kurita Water Industries has no effect on the direction of KB Financial i.e., KB Financial and Kurita Water go up and down completely randomly.
Pair Corralation between KB Financial and Kurita Water
Allowing for the 90-day total investment horizon KB Financial Group is expected to generate 1.06 times more return on investment than Kurita Water. However, KB Financial is 1.06 times more volatile than Kurita Water Industries. It trades about 0.18 of its potential returns per unit of risk. Kurita Water Industries is currently generating about 0.1 per unit of risk. If you would invest 6,524 in KB Financial Group on September 3, 2024 and sell it today you would earn a total of 369.00 from holding KB Financial Group or generate 5.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
KB Financial Group vs. Kurita Water Industries
Performance |
| Timeline |
| KB Financial Group |
| Kurita Water Industries |
KB Financial and Kurita Water Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KB Financial and Kurita Water
The main advantage of trading using opposite KB Financial and Kurita Water positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KB Financial position performs unexpectedly, Kurita Water 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 Kurita Water will offset losses from the drop in Kurita Water'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 |
| Kurita Water vs. Zurn Elkay Water | Kurita Water vs. Federal Signal | Kurita Water vs. Energy Recovery | Kurita Water vs. CECO Environmental Corp |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |