Correlation Between KB Financial and SUMMARECON AGUNG
Can any of the company-specific risk be diversified away by investing in both KB Financial and SUMMARECON AGUNG 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 SUMMARECON AGUNG 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 SUMMARECON AGUNG, you can compare the effects of market volatilities on KB Financial and SUMMARECON AGUNG 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 SUMMARECON AGUNG. Check out your portfolio center. Please also check ongoing floating volatility patterns of KB Financial and SUMMARECON AGUNG.
Diversification Opportunities for KB Financial and SUMMARECON AGUNG
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between KBIA and SUMMARECON is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding KB Financial Group and SUMMARECON AGUNG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SUMMARECON AGUNG 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 SUMMARECON AGUNG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SUMMARECON AGUNG has no effect on the direction of KB Financial i.e., KB Financial and SUMMARECON AGUNG go up and down completely randomly.
Pair Corralation between KB Financial and SUMMARECON AGUNG
Assuming the 90 days trading horizon KB Financial is expected to generate 1.8 times less return on investment than SUMMARECON AGUNG. But when comparing it to its historical volatility, KB Financial Group is 3.26 times less risky than SUMMARECON AGUNG. It trades about 0.08 of its potential returns per unit of risk. SUMMARECON AGUNG is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 2.25 in SUMMARECON AGUNG on September 14, 2024 and sell it today you would lose (0.05) from holding SUMMARECON AGUNG or give up 2.22% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
KB Financial Group vs. SUMMARECON AGUNG
Performance |
| Timeline |
| KB Financial Group |
| SUMMARECON AGUNG |
KB Financial and SUMMARECON AGUNG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KB Financial and SUMMARECON AGUNG
The main advantage of trading using opposite KB Financial and SUMMARECON AGUNG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KB Financial position performs unexpectedly, SUMMARECON AGUNG 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 SUMMARECON AGUNG will offset losses from the drop in SUMMARECON AGUNG'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 |
| SUMMARECON AGUNG vs. TYSON FOODS A | SUMMARECON AGUNG vs. Lifeway Foods | SUMMARECON AGUNG vs. STMicroelectronics NV | SUMMARECON AGUNG vs. STMICROELECTRONICS |
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.
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