Correlation Between KB Financial and Pulse Seismic
Can any of the company-specific risk be diversified away by investing in both KB Financial and Pulse Seismic 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 Pulse Seismic 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 Pulse Seismic, you can compare the effects of market volatilities on KB Financial and Pulse Seismic 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 Pulse Seismic. Check out your portfolio center. Please also check ongoing floating volatility patterns of KB Financial and Pulse Seismic.
Diversification Opportunities for KB Financial and Pulse Seismic
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between KB Financial and Pulse is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding KB Financial Group and Pulse Seismic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pulse Seismic 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 Pulse Seismic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pulse Seismic has no effect on the direction of KB Financial i.e., KB Financial and Pulse Seismic go up and down completely randomly.
Pair Corralation between KB Financial and Pulse Seismic
Allowing for the 90-day total investment horizon KB Financial Group is expected to generate 1.17 times more return on investment than Pulse Seismic. However, KB Financial is 1.17 times more volatile than Pulse Seismic. It trades about 0.17 of its potential returns per unit of risk. Pulse Seismic is currently generating about -0.06 per unit of risk. If you would invest 5,867 in KB Financial Group on August 26, 2024 and sell it today you would earn a total of 1,126 from holding KB Financial Group or generate 19.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
KB Financial Group vs. Pulse Seismic
Performance |
| Timeline |
| KB Financial Group |
| Pulse Seismic |
KB Financial and Pulse Seismic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KB Financial and Pulse Seismic
The main advantage of trading using opposite KB Financial and Pulse Seismic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KB Financial position performs unexpectedly, Pulse Seismic 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 Pulse Seismic will offset losses from the drop in Pulse Seismic'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 |
| Pulse Seismic vs. Now Inc | Pulse Seismic vs. Newpark Resources | Pulse Seismic vs. Enerflex | Pulse Seismic vs. Bristow Group |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |