Correlation Between KB Financial and Vivendi SE
Can any of the company-specific risk be diversified away by investing in both KB Financial and Vivendi SE 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 Vivendi SE 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 Vivendi SE, you can compare the effects of market volatilities on KB Financial and Vivendi SE 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 Vivendi SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of KB Financial and Vivendi SE.
Diversification Opportunities for KB Financial and Vivendi SE
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between KBIA and Vivendi is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding KB Financial Group and Vivendi SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vivendi SE 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 Vivendi SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vivendi SE has no effect on the direction of KB Financial i.e., KB Financial and Vivendi SE go up and down completely randomly.
Pair Corralation between KB Financial and Vivendi SE
Assuming the 90 days trading horizon KB Financial Group is expected to generate 1.7 times more return on investment than Vivendi SE. However, KB Financial is 1.7 times more volatile than Vivendi SE. It trades about 0.12 of its potential returns per unit of risk. Vivendi SE is currently generating about -0.34 per unit of risk. If you would invest 6,200 in KB Financial Group on September 1, 2024 and sell it today you would earn a total of 400.00 from holding KB Financial Group or generate 6.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
KB Financial Group vs. Vivendi SE
Performance |
| Timeline |
| KB Financial Group |
| Vivendi SE |
KB Financial and Vivendi SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KB Financial and Vivendi SE
The main advantage of trading using opposite KB Financial and Vivendi SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KB Financial position performs unexpectedly, Vivendi SE 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 Vivendi SE will offset losses from the drop in Vivendi SE's long position.| KB Financial vs. Fast Retailing Co | KB Financial vs. SALESFORCE INC CDR | KB Financial vs. AGRICULTBK HADR25 YC | KB Financial vs. Dairy Farm International |
| Vivendi SE vs. Guidewire Software | Vivendi SE vs. AXWAY SOFTWARE EO | Vivendi SE vs. AEGEAN AIRLINES | Vivendi SE vs. Carsales |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |