Correlation Between KB Financial and TAG Immobilien
Can any of the company-specific risk be diversified away by investing in both KB Financial and TAG Immobilien 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 TAG Immobilien 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 TAG Immobilien AG, you can compare the effects of market volatilities on KB Financial and TAG Immobilien 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 TAG Immobilien. Check out your portfolio center. Please also check ongoing floating volatility patterns of KB Financial and TAG Immobilien.
Diversification Opportunities for KB Financial and TAG Immobilien
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between KBIA and TAG is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding KB Financial Group and TAG Immobilien AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TAG Immobilien AG 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 TAG Immobilien. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TAG Immobilien AG has no effect on the direction of KB Financial i.e., KB Financial and TAG Immobilien go up and down completely randomly.
Pair Corralation between KB Financial and TAG Immobilien
Assuming the 90 days trading horizon KB Financial Group is expected to generate 1.63 times more return on investment than TAG Immobilien. However, KB Financial is 1.63 times more volatile than TAG Immobilien AG. It trades about 0.09 of its potential returns per unit of risk. TAG Immobilien AG is currently generating about 0.06 per unit of risk. If you would invest 5,737 in KB Financial Group on September 2, 2024 and sell it today you would earn a total of 863.00 from holding KB Financial Group or generate 15.04% 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. TAG Immobilien AG
Performance |
| Timeline |
| KB Financial Group |
| TAG Immobilien AG |
KB Financial and TAG Immobilien Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KB Financial and TAG Immobilien
The main advantage of trading using opposite KB Financial and TAG Immobilien positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KB Financial position performs unexpectedly, TAG Immobilien 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 TAG Immobilien will offset losses from the drop in TAG Immobilien's long position.| KB Financial vs. The Trade Desk | KB Financial vs. FLOW TRADERS LTD | KB Financial vs. Ultra Clean Holdings | KB Financial vs. Auto Trader Group |
| TAG Immobilien vs. CBRE Group Class | TAG Immobilien vs. Superior Plus Corp | TAG Immobilien vs. NMI Holdings | TAG Immobilien vs. Origin Agritech |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |