Correlation Between KB Financial and PIAGGIO C
Can any of the company-specific risk be diversified away by investing in both KB Financial and PIAGGIO C 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 PIAGGIO C 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 PIAGGIO C, you can compare the effects of market volatilities on KB Financial and PIAGGIO C 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 PIAGGIO C. Check out your portfolio center. Please also check ongoing floating volatility patterns of KB Financial and PIAGGIO C.
Diversification Opportunities for KB Financial and PIAGGIO C
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between KBIA and PIAGGIO is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding KB Financial Group and PIAGGIO C in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PIAGGIO C 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 PIAGGIO C. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PIAGGIO C has no effect on the direction of KB Financial i.e., KB Financial and PIAGGIO C go up and down completely randomly.
Pair Corralation between KB Financial and PIAGGIO C
Assuming the 90 days trading horizon KB Financial Group is expected to under-perform the PIAGGIO C. In addition to that, KB Financial is 1.82 times more volatile than PIAGGIO C. It trades about -0.07 of its total potential returns per unit of risk. PIAGGIO C is currently generating about 0.08 per unit of volatility. If you would invest 207.00 in PIAGGIO C on September 13, 2024 and sell it today you would earn a total of 6.00 from holding PIAGGIO C or generate 2.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
KB Financial Group vs. PIAGGIO C
Performance |
| Timeline |
| KB Financial Group |
| PIAGGIO C |
KB Financial and PIAGGIO C Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KB Financial and PIAGGIO C
The main advantage of trading using opposite KB Financial and PIAGGIO C positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KB Financial position performs unexpectedly, PIAGGIO C 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 PIAGGIO C will offset losses from the drop in PIAGGIO C's long position.| KB Financial vs. Elmos Semiconductor SE | KB Financial vs. TRADEGATE | KB Financial vs. CANON MARKETING JP | KB Financial vs. MARKET VECTR RETAIL |
| PIAGGIO C vs. AVITA Medical | PIAGGIO C vs. ONWARD MEDICAL BV | PIAGGIO C vs. ADRIATIC METALS LS 013355 | PIAGGIO C vs. MeVis Medical Solutions |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |