Correlation Between KB Financial and Tanger Factory
Can any of the company-specific risk be diversified away by investing in both KB Financial and Tanger Factory 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 Tanger Factory 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 Tanger Factory Outlet, you can compare the effects of market volatilities on KB Financial and Tanger Factory 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 Tanger Factory. Check out your portfolio center. Please also check ongoing floating volatility patterns of KB Financial and Tanger Factory.
Diversification Opportunities for KB Financial and Tanger Factory
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between KBIA and Tanger is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding KB Financial Group and Tanger Factory Outlet in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tanger Factory Outlet 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 Tanger Factory. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tanger Factory Outlet has no effect on the direction of KB Financial i.e., KB Financial and Tanger Factory go up and down completely randomly.
Pair Corralation between KB Financial and Tanger Factory
If you would invest 0.00 in Tanger Factory Outlet on January 12, 2025 and sell it today you would earn a total of 0.00 from holding Tanger Factory Outlet or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 4.35% |
| Values | Daily Returns |
KB Financial Group vs. Tanger Factory Outlet
Performance |
| Timeline |
| KB Financial Group |
| Tanger Factory Outlet |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
KB Financial and Tanger Factory Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KB Financial and Tanger Factory
The main advantage of trading using opposite KB Financial and Tanger Factory positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KB Financial position performs unexpectedly, Tanger Factory 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 Tanger Factory will offset losses from the drop in Tanger Factory's long position.| KB Financial vs. USWE SPORTS AB | KB Financial vs. Chesapeake Utilities | KB Financial vs. WILLIS LEASE FIN | KB Financial vs. Fukuyama Transporting Co |
| Tanger Factory vs. Universal Display | Tanger Factory vs. MAGNUM MINING EXP | Tanger Factory vs. Columbia Sportswear | Tanger Factory vs. PLAYWAY SA ZY 10 |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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