Correlation Between KB Financial and Thinkific Labs
Can any of the company-specific risk be diversified away by investing in both KB Financial and Thinkific Labs 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 Thinkific Labs 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 Thinkific Labs, you can compare the effects of market volatilities on KB Financial and Thinkific Labs 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 Thinkific Labs. Check out your portfolio center. Please also check ongoing floating volatility patterns of KB Financial and Thinkific Labs.
Diversification Opportunities for KB Financial and Thinkific Labs
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between KB Financial and Thinkific is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding KB Financial Group and Thinkific Labs in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thinkific Labs 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 Thinkific Labs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thinkific Labs has no effect on the direction of KB Financial i.e., KB Financial and Thinkific Labs go up and down completely randomly.
Pair Corralation between KB Financial and Thinkific Labs
Allowing for the 90-day total investment horizon KB Financial Group is expected to generate 0.74 times more return on investment than Thinkific Labs. However, KB Financial Group is 1.36 times less risky than Thinkific Labs. It trades about 0.08 of its potential returns per unit of risk. Thinkific Labs is currently generating about -0.02 per unit of risk. If you would invest 5,696 in KB Financial Group on September 1, 2024 and sell it today you would earn a total of 1,197 from holding KB Financial Group or generate 21.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.21% |
| Values | Daily Returns |
KB Financial Group vs. Thinkific Labs
Performance |
| Timeline |
| KB Financial Group |
| Thinkific Labs |
KB Financial and Thinkific Labs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KB Financial and Thinkific Labs
The main advantage of trading using opposite KB Financial and Thinkific Labs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KB Financial position performs unexpectedly, Thinkific Labs 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 Thinkific Labs will offset losses from the drop in Thinkific Labs' long position.| KB Financial vs. Banco Santander Brasil | KB Financial vs. CrossFirst Bankshares | KB Financial vs. Banco Bradesco SA | KB Financial vs. CF Bankshares |
| Thinkific Labs vs. Waldencast Acquisition Corp | Thinkific Labs vs. Alkami Technology | Thinkific Labs vs. ADEIA P | Thinkific Labs vs. Paycor HCM |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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