Correlation Between KB Financial and PVH Corp
Can any of the company-specific risk be diversified away by investing in both KB Financial and PVH Corp 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 PVH Corp 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 PVH Corp, you can compare the effects of market volatilities on KB Financial and PVH Corp 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 PVH Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of KB Financial and PVH Corp.
Diversification Opportunities for KB Financial and PVH Corp
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between KBIA and PVH is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding KB Financial Group and PVH Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PVH Corp 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 PVH Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PVH Corp has no effect on the direction of KB Financial i.e., KB Financial and PVH Corp go up and down completely randomly.
Pair Corralation between KB Financial and PVH Corp
Assuming the 90 days trading horizon KB Financial Group is expected to under-perform the PVH Corp. In addition to that, KB Financial is 1.16 times more volatile than PVH Corp. It trades about -0.04 of its total potential returns per unit of risk. PVH Corp is currently generating about -0.03 per unit of volatility. If you would invest 9,377 in PVH Corp on November 6, 2024 and sell it today you would lose (457.00) from holding PVH Corp or give up 4.87% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.33% |
| Values | Daily Returns |
KB Financial Group vs. PVH Corp
Performance |
| Timeline |
| KB Financial Group |
| PVH Corp |
KB Financial and PVH Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KB Financial and PVH Corp
The main advantage of trading using opposite KB Financial and PVH Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KB Financial position performs unexpectedly, PVH Corp 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 PVH Corp will offset losses from the drop in PVH Corp's long position.| KB Financial vs. YATRA ONLINE DL 0001 | KB Financial vs. Universal Entertainment | KB Financial vs. PENN Entertainment | KB Financial vs. Gruppo Mutuionline SpA |
| PVH Corp vs. Meta Financial Group | PVH Corp vs. FIRST SHIP LEASE | PVH Corp vs. Erste Group Bank | PVH Corp vs. CullenFrost Bankers |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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