Correlation Between KB Financial and Timber Pharmaceuticals
Can any of the company-specific risk be diversified away by investing in both KB Financial and Timber Pharmaceuticals 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 Timber Pharmaceuticals 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 Timber Pharmaceuticals, you can compare the effects of market volatilities on KB Financial and Timber Pharmaceuticals 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 Timber Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of KB Financial and Timber Pharmaceuticals.
Diversification Opportunities for KB Financial and Timber Pharmaceuticals
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between KB Financial and Timber is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding KB Financial Group and Timber Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Timber Pharmaceuticals 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 Timber Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Timber Pharmaceuticals has no effect on the direction of KB Financial i.e., KB Financial and Timber Pharmaceuticals go up and down completely randomly.
Pair Corralation between KB Financial and Timber Pharmaceuticals
If you would invest (100.00) in Timber Pharmaceuticals on December 31, 2024 and sell it today you would earn a total of 100.00 from holding Timber Pharmaceuticals or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
KB Financial Group vs. Timber Pharmaceuticals
Performance |
| Timeline |
| KB Financial Group |
| Timber Pharmaceuticals |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
KB Financial and Timber Pharmaceuticals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KB Financial and Timber Pharmaceuticals
The main advantage of trading using opposite KB Financial and Timber Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KB Financial position performs unexpectedly, Timber Pharmaceuticals 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 Timber Pharmaceuticals will offset losses from the drop in Timber Pharmaceuticals' long position.| KB Financial vs. Shinhan Financial Group | ||
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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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