Correlation Between KB Financial and Norma Group
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By analyzing existing cross correlation between KB Financial Group and Norma Group AG, you can compare the effects of market volatilities on KB Financial and Norma Group 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 Norma Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of KB Financial and Norma Group.
Diversification Opportunities for KB Financial and Norma Group
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between KBIA and Norma is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding KB Financial Group and Norma Group AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Norma Group AG 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 Norma Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Norma Group AG has no effect on the direction of KB Financial i.e., KB Financial and Norma Group go up and down completely randomly.
Pair Corralation between KB Financial and Norma Group
If you would invest (100.00) in Norma Group AG on January 14, 2025 and sell it today you would earn a total of 100.00 from holding Norma Group AG or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 0.0% |
| Values | Daily Returns |
KB Financial Group vs. Norma Group AG
Performance |
| Timeline |
| KB Financial Group |
| Norma Group AG |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
KB Financial and Norma Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KB Financial and Norma Group
The main advantage of trading using opposite KB Financial and Norma Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KB Financial position performs unexpectedly, Norma Group 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 Norma Group will offset losses from the drop in Norma Group's long position.| KB Financial vs. Tradeweb Markets | KB Financial vs. American Homes 4 | KB Financial vs. bet at home AG | KB Financial vs. Auto Trader 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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