Correlation Between Apple and KB Financial

Can any of the company-specific risk be diversified away by investing in both Apple 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 Apple and KB Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Apple Inc and KB Financial Group, you can compare the effects of market volatilities on Apple 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 Apple with a short position of KB Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apple and KB Financial.

Diversification Opportunities for Apple and KB Financial

0.49

Correlation Coefficient

Apple  KB Financial

Very weak diversification

The 3 months correlation between Apple and K1BF34 is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc 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 Apple 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 Apple Inc 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 Apple i.e., Apple and KB Financial go up and down completely randomly.

Pair Corralation between Apple and KB Financial

Assuming the 90 days trading horizon Apple Inc is expected to under-perform the KB Financial. But the stock apears to be less risky and, when comparing its historical volatility, Apple Inc is 1.16 times less risky than KB Financial. The stock trades about -0.2 of its potential returns per unit of risk. The KB Financial Group is currently generating about -0.08 of returns per unit of risk over similar time horizon. If you would invest  8,908  in KB Financial Group on December 25, 2024 and sell it today you would lose (938.00) from holding KB Financial Group or give up 10.53% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Apple Inc  vs.  KB Financial Group

Apple Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Apple Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

KB Financial Group

Risk-Adjusted Performance

Very Weak

Over the last 90 days KB Financial Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's fundamental drivers remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Pair Trading with Apple and KB Financial

The main advantage of trading using opposite Apple and KB Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apple 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.

The idea behind Apple Inc and KB Financial Group pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.