Correlation Between KB Financial and Rithm Property
Can any of the company-specific risk be diversified away by investing in both KB Financial and Rithm Property 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 Rithm Property 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 Rithm Property Trust, you can compare the effects of market volatilities on KB Financial and Rithm Property 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 Rithm Property. Check out your portfolio center. Please also check ongoing floating volatility patterns of KB Financial and Rithm Property.
Diversification Opportunities for KB Financial and Rithm Property
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between KB Financial and Rithm is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding KB Financial Group and Rithm Property Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rithm Property Trust 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 Rithm Property. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rithm Property Trust has no effect on the direction of KB Financial i.e., KB Financial and Rithm Property go up and down completely randomly.
Pair Corralation between KB Financial and Rithm Property
Allowing for the 90-day total investment horizon KB Financial Group is expected to generate 1.09 times more return on investment than Rithm Property. However, KB Financial is 1.09 times more volatile than Rithm Property Trust. It trades about 0.18 of its potential returns per unit of risk. Rithm Property Trust is currently generating about -0.03 per unit of risk. If you would invest 8,598 in KB Financial Group on December 1, 2025 and sell it today you would earn a total of 2,402 from holding KB Financial Group or generate 27.94% 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. Rithm Property Trust
Performance |
| Timeline |
| KB Financial Group |
| Rithm Property Trust |
KB Financial and Rithm Property Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KB Financial and Rithm Property
The main advantage of trading using opposite KB Financial and Rithm Property positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KB Financial position performs unexpectedly, Rithm Property 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 Rithm Property will offset losses from the drop in Rithm Property's long position.| KB Financial vs. Citigroup | KB Financial vs. Canadian Imperial Bank | KB Financial vs. Nu Holdings | KB Financial vs. Royal Bank of |
| Rithm Property vs. Cherry Hill Mortgage | Rithm Property vs. Lument Finance Trust | Rithm Property vs. Granite Point Mortgage | Rithm Property vs. Alset Ehome International |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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