Correlation Between KB Financial and Odyssey Group
Can any of the company-specific risk be diversified away by investing in both KB Financial and Odyssey Group 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 Odyssey Group 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 Odyssey Group International, you can compare the effects of market volatilities on KB Financial and Odyssey Group 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 Odyssey Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of KB Financial and Odyssey Group.
Diversification Opportunities for KB Financial and Odyssey Group
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between KB Financial and Odyssey is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding KB Financial Group and Odyssey Group International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Odyssey Group Intern 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 Odyssey Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Odyssey Group Intern has no effect on the direction of KB Financial i.e., KB Financial and Odyssey Group go up and down completely randomly.
Pair Corralation between KB Financial and Odyssey Group
Allowing for the 90-day total investment horizon KB Financial Group is expected to generate 0.21 times more return on investment than Odyssey Group. However, KB Financial Group is 4.85 times less risky than Odyssey Group. It trades about -0.04 of its potential returns per unit of risk. Odyssey Group International is currently generating about -0.02 per unit of risk. If you would invest 6,311 in KB Financial Group on December 4, 2024 and sell it today you would lose (897.00) from holding KB Financial Group or give up 14.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.19% |
| Values | Daily Returns |
KB Financial Group vs. Odyssey Group International
Performance |
| Timeline |
| KB Financial Group |
| Odyssey Group Intern |
KB Financial and Odyssey Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KB Financial and Odyssey Group
The main advantage of trading using opposite KB Financial and Odyssey Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KB Financial position performs unexpectedly, Odyssey Group 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 Odyssey Group will offset losses from the drop in Odyssey Group's long position.| KB Financial vs. Banco Santander Brasil | KB Financial vs. CrossFirst Bankshares | KB Financial vs. Banco Bradesco SA | KB Financial vs. CF Bankshares |
| Odyssey Group vs. Forza Innovations | Odyssey Group vs. Bioelectronics Corp | Odyssey Group vs. Myomo Inc | Odyssey Group vs. REMSleep 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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