Correlation Between KB Financial and LINKBANCORP
Can any of the company-specific risk be diversified away by investing in both KB Financial and LINKBANCORP 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 LINKBANCORP 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 LINKBANCORP, you can compare the effects of market volatilities on KB Financial and LINKBANCORP 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 LINKBANCORP. Check out your portfolio center. Please also check ongoing floating volatility patterns of KB Financial and LINKBANCORP.
Diversification Opportunities for KB Financial and LINKBANCORP
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between KB Financial and LINKBANCORP is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding KB Financial Group and LINKBANCORP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LINKBANCORP 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 LINKBANCORP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LINKBANCORP has no effect on the direction of KB Financial i.e., KB Financial and LINKBANCORP go up and down completely randomly.
Pair Corralation between KB Financial and LINKBANCORP
Allowing for the 90-day total investment horizon KB Financial Group is expected to generate 0.74 times more return on investment than LINKBANCORP. However, KB Financial Group is 1.35 times less risky than LINKBANCORP. It trades about -0.12 of its potential returns per unit of risk. LINKBANCORP is currently generating about -0.14 per unit of risk. If you would invest 5,437 in KB Financial Group on January 5, 2025 and sell it today you would lose (270.00) from holding KB Financial Group or give up 4.97% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
KB Financial Group vs. LINKBANCORP
Performance |
| Timeline |
| KB Financial Group |
| LINKBANCORP |
KB Financial and LINKBANCORP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KB Financial and LINKBANCORP
The main advantage of trading using opposite KB Financial and LINKBANCORP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KB Financial position performs unexpectedly, LINKBANCORP 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 LINKBANCORP will offset losses from the drop in LINKBANCORP'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 |
| LINKBANCORP vs. Home Federal Bancorp | ||
| LINKBANCORP vs. Lake Shore Bancorp | ||
| LINKBANCORP vs. Community West Bancshares | ||
| LINKBANCORP vs. Magyar Bancorp |
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 Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |