Correlation Between Ming Le and KB Financial
Can any of the company-specific risk be diversified away by investing in both Ming Le and KB Financial 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 Ming Le and KB Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ming Le Sports and KB Financial Group, you can compare the effects of market volatilities on Ming Le and KB Financial 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 Ming Le with a short position of KB Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ming Le and KB Financial.
Diversification Opportunities for Ming Le and KB Financial
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ming and KBIA is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Ming Le Sports and KB Financial Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KB Financial Group and Ming Le 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 Ming Le Sports are associated (or correlated) with KB Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KB Financial Group has no effect on the direction of Ming Le i.e., Ming Le and KB Financial go up and down completely randomly.
Pair Corralation between Ming Le and KB Financial
Assuming the 90 days trading horizon Ming Le Sports is expected to under-perform the KB Financial. But the stock apears to be less risky and, when comparing its historical volatility, Ming Le Sports is 1.47 times less risky than KB Financial. The stock trades about -0.21 of its potential returns per unit of risk. The KB Financial Group is currently generating about -0.14 of returns per unit of risk over similar time horizon. If you would invest 5,850 in KB Financial Group on November 28, 2024 and sell it today you would lose (500.00) from holding KB Financial Group or give up 8.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ming Le Sports vs. KB Financial Group
Performance |
| Timeline |
| Ming Le Sports |
| KB Financial Group |
Ming Le and KB Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ming Le and KB Financial
The main advantage of trading using opposite Ming Le and KB Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ming Le position performs unexpectedly, KB Financial 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 KB Financial will offset losses from the drop in KB Financial's long position.| Ming Le vs. Tradegate AG Wertpapierhandelsbank | Ming Le vs. H2O Retailing | Ming Le vs. Jacquet Metal Service | Ming Le vs. Canon Marketing Japan |
| KB Financial vs. SEKISUI CHEMICAL | KB Financial vs. CALTAGIRONE EDITORE | KB Financial vs. China BlueChemical | KB Financial vs. Insteel Industries |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |