Correlation Between KB Financial and TOPPS TILES
Can any of the company-specific risk be diversified away by investing in both KB Financial and TOPPS TILES 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 TOPPS TILES 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 TOPPS TILES PLC, you can compare the effects of market volatilities on KB Financial and TOPPS TILES 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 TOPPS TILES. Check out your portfolio center. Please also check ongoing floating volatility patterns of KB Financial and TOPPS TILES.
Diversification Opportunities for KB Financial and TOPPS TILES
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between KBIA and TOPPS is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding KB Financial Group and TOPPS TILES PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TOPPS TILES PLC 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 TOPPS TILES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TOPPS TILES PLC has no effect on the direction of KB Financial i.e., KB Financial and TOPPS TILES go up and down completely randomly.
Pair Corralation between KB Financial and TOPPS TILES
Assuming the 90 days trading horizon KB Financial Group is expected to under-perform the TOPPS TILES. In addition to that, KB Financial is 1.41 times more volatile than TOPPS TILES PLC. It trades about -0.18 of its total potential returns per unit of risk. TOPPS TILES PLC is currently generating about -0.13 per unit of volatility. If you would invest 41.00 in TOPPS TILES PLC on December 1, 2024 and sell it today you would lose (2.00) from holding TOPPS TILES PLC or give up 4.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
KB Financial Group vs. TOPPS TILES PLC
Performance |
| Timeline |
| KB Financial Group |
| TOPPS TILES PLC |
KB Financial and TOPPS TILES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KB Financial and TOPPS TILES
The main advantage of trading using opposite KB Financial and TOPPS TILES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KB Financial position performs unexpectedly, TOPPS TILES 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 TOPPS TILES will offset losses from the drop in TOPPS TILES's long position.| KB Financial vs. COPLAND ROAD CAPITAL | KB Financial vs. BROADSTNET LEADL 00025 | KB Financial vs. QUEEN S ROAD | KB Financial vs. Apollo Investment Corp |
| TOPPS TILES vs. The Home Depot | TOPPS TILES vs. The Home Depot | TOPPS TILES vs. Floor Decor Holdings | TOPPS TILES vs. LESLIES INC DL |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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