Correlation Between KB Financial and Apple
Can any of the company-specific risk be diversified away by investing in both KB Financial and Apple 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 Apple 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 Apple Inc, you can compare the effects of market volatilities on KB Financial and Apple 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 Apple. Check out your portfolio center. Please also check ongoing floating volatility patterns of KB Financial and Apple.
Diversification Opportunities for KB Financial and Apple
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between KBIA and Apple is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding KB Financial Group and Apple Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apple Inc 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 Apple. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apple Inc has no effect on the direction of KB Financial i.e., KB Financial and Apple go up and down completely randomly.
Pair Corralation between KB Financial and Apple
Assuming the 90 days trading horizon KB Financial Group is expected to generate 2.18 times more return on investment than Apple. However, KB Financial is 2.18 times more volatile than Apple Inc. It trades about 0.04 of its potential returns per unit of risk. Apple Inc is currently generating about 0.06 per unit of risk. If you would invest 6,550 in KB Financial Group on August 28, 2024 and sell it today you would earn a total of 100.00 from holding KB Financial Group or generate 1.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
KB Financial Group vs. Apple Inc
Performance |
| Timeline |
| KB Financial Group |
| Apple Inc |
KB Financial and Apple Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KB Financial and Apple
The main advantage of trading using opposite KB Financial and Apple positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KB Financial position performs unexpectedly, Apple 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 Apple will offset losses from the drop in Apple's long position.| KB Financial vs. GOLD ROAD RES | KB Financial vs. ECHO INVESTMENT ZY | KB Financial vs. Air Transport Services | KB Financial vs. TITANIUM TRANSPORTGROUP |
| Apple vs. Elmos Semiconductor SE | Apple vs. JAPAN TOBACCO UNSPADR12 | Apple vs. Samsung Electronics Co | Apple vs. BE Semiconductor Industries |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Stocks Directory Find actively traded stocks across global markets |