Correlation Between KB Financial and Shawcor
Can any of the company-specific risk be diversified away by investing in both KB Financial and Shawcor 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 Shawcor 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 Shawcor, you can compare the effects of market volatilities on KB Financial and Shawcor 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 Shawcor. Check out your portfolio center. Please also check ongoing floating volatility patterns of KB Financial and Shawcor.
Diversification Opportunities for KB Financial and Shawcor
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between KB Financial and Shawcor is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding KB Financial Group and Shawcor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shawcor 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 Shawcor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shawcor has no effect on the direction of KB Financial i.e., KB Financial and Shawcor go up and down completely randomly.
Pair Corralation between KB Financial and Shawcor
If you would invest 6,524 in KB Financial Group on September 3, 2024 and sell it today you would earn a total of 352.00 from holding KB Financial Group or generate 5.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 5.0% |
| Values | Daily Returns |
KB Financial Group vs. Shawcor
Performance |
| Timeline |
| KB Financial Group |
| Shawcor |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
KB Financial and Shawcor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KB Financial and Shawcor
The main advantage of trading using opposite KB Financial and Shawcor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KB Financial position performs unexpectedly, Shawcor 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 Shawcor will offset losses from the drop in Shawcor's long position.| KB Financial vs. Shinhan Financial Group | KB Financial vs. Woori Financial Group | KB Financial vs. Korea Electric Power | KB Financial vs. Orix Corp Ads |
| Shawcor vs. STEP Energy Services | Shawcor vs. Total Energy Services | Shawcor vs. Trican Well Service | Shawcor vs. High Arctic Energy |
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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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