Correlation Between KB Financial and Mesoblast
Can any of the company-specific risk be diversified away by investing in both KB Financial and Mesoblast 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 Mesoblast 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 Mesoblast, you can compare the effects of market volatilities on KB Financial and Mesoblast 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 Mesoblast. Check out your portfolio center. Please also check ongoing floating volatility patterns of KB Financial and Mesoblast.
Diversification Opportunities for KB Financial and Mesoblast
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between KB Financial and Mesoblast is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding KB Financial Group and Mesoblast in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mesoblast 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 Mesoblast. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mesoblast has no effect on the direction of KB Financial i.e., KB Financial and Mesoblast go up and down completely randomly.
Pair Corralation between KB Financial and Mesoblast
Allowing for the 90-day total investment horizon KB Financial is expected to generate 5.17 times less return on investment than Mesoblast. But when comparing it to its historical volatility, KB Financial Group is 3.13 times less risky than Mesoblast. It trades about 0.09 of its potential returns per unit of risk. Mesoblast is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 183.00 in Mesoblast on November 9, 2024 and sell it today you would earn a total of 1,686 from holding Mesoblast or generate 921.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.25% |
| Values | Daily Returns |
KB Financial Group vs. Mesoblast
Performance |
| Timeline |
| KB Financial Group |
| Mesoblast |
KB Financial and Mesoblast Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KB Financial and Mesoblast
The main advantage of trading using opposite KB Financial and Mesoblast positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KB Financial position performs unexpectedly, Mesoblast 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 Mesoblast will offset losses from the drop in Mesoblast'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 |
| Mesoblast vs. Aditxt Inc | Mesoblast vs. Lipocine | Mesoblast vs. Connect Biopharma Holdings | Mesoblast vs. Acumen Pharmaceuticals |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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