Correlation Between KB Financial and YOMA STRATEGIC
Can any of the company-specific risk be diversified away by investing in both KB Financial and YOMA STRATEGIC 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 YOMA STRATEGIC 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 YOMA STRATEGIC HLDG, you can compare the effects of market volatilities on KB Financial and YOMA STRATEGIC 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 YOMA STRATEGIC. Check out your portfolio center. Please also check ongoing floating volatility patterns of KB Financial and YOMA STRATEGIC.
Diversification Opportunities for KB Financial and YOMA STRATEGIC
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between KBIA and YOMA is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding KB Financial Group and YOMA STRATEGIC HLDG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on YOMA STRATEGIC HLDG 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 YOMA STRATEGIC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of YOMA STRATEGIC HLDG has no effect on the direction of KB Financial i.e., KB Financial and YOMA STRATEGIC go up and down completely randomly.
Pair Corralation between KB Financial and YOMA STRATEGIC
If you would invest 3,171 in KB Financial Group on September 22, 2024 and sell it today you would earn a total of 2,429 from holding KB Financial Group or generate 76.6% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 0.0% |
Values | Daily Returns |
KB Financial Group vs. YOMA STRATEGIC HLDG
Performance |
Timeline |
KB Financial Group |
YOMA STRATEGIC HLDG |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
KB Financial and YOMA STRATEGIC Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with KB Financial and YOMA STRATEGIC
The main advantage of trading using opposite KB Financial and YOMA STRATEGIC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KB Financial position performs unexpectedly, YOMA STRATEGIC 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 YOMA STRATEGIC will offset losses from the drop in YOMA STRATEGIC's long position.KB Financial vs. China Merchants Bank | ||
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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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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