Correlation Between KB Financial and ProMIS Neurosciences
Can any of the company-specific risk be diversified away by investing in both KB Financial and ProMIS Neurosciences 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 ProMIS Neurosciences 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 ProMIS Neurosciences, you can compare the effects of market volatilities on KB Financial and ProMIS Neurosciences 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 ProMIS Neurosciences. Check out your portfolio center. Please also check ongoing floating volatility patterns of KB Financial and ProMIS Neurosciences.
Diversification Opportunities for KB Financial and ProMIS Neurosciences
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between KB Financial and ProMIS is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding KB Financial Group and ProMIS Neurosciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProMIS Neurosciences 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 ProMIS Neurosciences. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProMIS Neurosciences has no effect on the direction of KB Financial i.e., KB Financial and ProMIS Neurosciences go up and down completely randomly.
Pair Corralation between KB Financial and ProMIS Neurosciences
Allowing for the 90-day total investment horizon KB Financial Group is expected to generate 0.35 times more return on investment than ProMIS Neurosciences. However, KB Financial Group is 2.86 times less risky than ProMIS Neurosciences. It trades about 0.17 of its potential returns per unit of risk. ProMIS Neurosciences is currently generating about -0.29 per unit of risk. If you would invest 6,524 in KB Financial Group on September 1, 2024 and sell it today you would earn a total of 369.00 from holding KB Financial Group or generate 5.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
KB Financial Group vs. ProMIS Neurosciences
Performance |
| Timeline |
| KB Financial Group |
| ProMIS Neurosciences |
KB Financial and ProMIS Neurosciences Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KB Financial and ProMIS Neurosciences
The main advantage of trading using opposite KB Financial and ProMIS Neurosciences positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KB Financial position performs unexpectedly, ProMIS Neurosciences 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 ProMIS Neurosciences will offset losses from the drop in ProMIS Neurosciences' long position.| KB Financial vs. Banco Santander Brasil | KB Financial vs. CrossFirst Bankshares | KB Financial vs. Banco Bradesco SA | KB Financial vs. CF Bankshares |
| ProMIS Neurosciences vs. Tff Pharmaceuticals | ProMIS Neurosciences vs. Eliem Therapeutics | ProMIS Neurosciences vs. Inhibrx | ProMIS Neurosciences vs. Enliven Therapeutics |
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 Stocks Directory module to find actively traded stocks across global markets.
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