Correlation Between KB Financial and Sydbank AS
Can any of the company-specific risk be diversified away by investing in both KB Financial and Sydbank AS 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 Sydbank AS 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 Sydbank AS, you can compare the effects of market volatilities on KB Financial and Sydbank AS 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 Sydbank AS. Check out your portfolio center. Please also check ongoing floating volatility patterns of KB Financial and Sydbank AS.
Diversification Opportunities for KB Financial and Sydbank AS
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between KBIA and Sydbank is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding KB Financial Group and Sydbank AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sydbank AS 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 Sydbank AS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sydbank AS has no effect on the direction of KB Financial i.e., KB Financial and Sydbank AS go up and down completely randomly.
Pair Corralation between KB Financial and Sydbank AS
Assuming the 90 days trading horizon KB Financial is expected to generate 2.02 times less return on investment than Sydbank AS. In addition to that, KB Financial is 1.41 times more volatile than Sydbank AS. It trades about 0.04 of its total potential returns per unit of risk. Sydbank AS is currently generating about 0.11 per unit of volatility. If you would invest 4,388 in Sydbank AS on October 31, 2024 and sell it today you would earn a total of 692.00 from holding Sydbank AS or generate 15.77% 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. Sydbank AS
Performance |
| Timeline |
| KB Financial Group |
| Sydbank AS |
KB Financial and Sydbank AS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KB Financial and Sydbank AS
The main advantage of trading using opposite KB Financial and Sydbank AS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KB Financial position performs unexpectedly, Sydbank AS 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 Sydbank AS will offset losses from the drop in Sydbank AS's long position.| KB Financial vs. Meli Hotels International | KB Financial vs. Calibre Mining Corp | KB Financial vs. De Grey Mining | KB Financial vs. NH HOTEL GROUP |
| Sydbank AS vs. Fast Retailing Co | Sydbank AS vs. Retail Estates NV | Sydbank AS vs. MONEYSUPERMARKET | Sydbank AS vs. US FOODS HOLDING |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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