Correlation Between KB Financial and Ottawa Savings
Can any of the company-specific risk be diversified away by investing in both KB Financial and Ottawa Savings 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 Ottawa Savings 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 Ottawa Savings Bancorp, you can compare the effects of market volatilities on KB Financial and Ottawa Savings 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 Ottawa Savings. Check out your portfolio center. Please also check ongoing floating volatility patterns of KB Financial and Ottawa Savings.
Diversification Opportunities for KB Financial and Ottawa Savings
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between KB Financial and Ottawa is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding KB Financial Group and Ottawa Savings Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ottawa Savings Bancorp 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 Ottawa Savings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ottawa Savings Bancorp has no effect on the direction of KB Financial i.e., KB Financial and Ottawa Savings go up and down completely randomly.
Pair Corralation between KB Financial and Ottawa Savings
If you would invest 6,175 in KB Financial Group on August 30, 2024 and sell it today you would earn a total of 904.00 from holding KB Financial Group or generate 14.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 2.27% |
| Values | Daily Returns |
KB Financial Group vs. Ottawa Savings Bancorp
Performance |
| Timeline |
| KB Financial Group |
| Ottawa Savings Bancorp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
KB Financial and Ottawa Savings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KB Financial and Ottawa Savings
The main advantage of trading using opposite KB Financial and Ottawa Savings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KB Financial position performs unexpectedly, Ottawa Savings 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 Ottawa Savings will offset losses from the drop in Ottawa Savings' long position.| KB Financial vs. JPMorgan Chase Co | KB Financial vs. Citigroup | KB Financial vs. Wells Fargo | KB Financial vs. Toronto Dominion Bank |
| Ottawa Savings vs. Lake Shore Bancorp | Ottawa Savings vs. IF Bancorp | Ottawa Savings vs. Home Federal 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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