Correlation Between KB Financial and Lizhi
Can any of the company-specific risk be diversified away by investing in both KB Financial and Lizhi 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 Lizhi 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 Lizhi Inc, you can compare the effects of market volatilities on KB Financial and Lizhi 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 Lizhi. Check out your portfolio center. Please also check ongoing floating volatility patterns of KB Financial and Lizhi.
Diversification Opportunities for KB Financial and Lizhi
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between KB Financial and Lizhi is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding KB Financial Group and Lizhi Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lizhi Inc 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 Lizhi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lizhi Inc has no effect on the direction of KB Financial i.e., KB Financial and Lizhi go up and down completely randomly.
Pair Corralation between KB Financial and Lizhi
If you would invest 5,696 in KB Financial Group on August 30, 2024 and sell it today you would earn a total of 1,383 from holding KB Financial Group or generate 24.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 0.79% |
| Values | Daily Returns |
KB Financial Group vs. Lizhi Inc
Performance |
| Timeline |
| KB Financial Group |
| Lizhi Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
KB Financial and Lizhi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KB Financial and Lizhi
The main advantage of trading using opposite KB Financial and Lizhi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KB Financial position performs unexpectedly, Lizhi 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 Lizhi will offset losses from the drop in Lizhi's long position.| KB Financial vs. JPMorgan Chase Co | KB Financial vs. Citigroup | KB Financial vs. Wells Fargo | KB Financial vs. Toronto Dominion Bank |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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