Correlation Between KB Financial and Mobile Lads

Can any of the company-specific risk be diversified away by investing in both KB Financial and Mobile Lads 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 Mobile Lads 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 Mobile Lads Corp, you can compare the effects of market volatilities on KB Financial and Mobile Lads 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 Mobile Lads. Check out your portfolio center. Please also check ongoing floating volatility patterns of KB Financial and Mobile Lads.

Diversification Opportunities for KB Financial and Mobile Lads

0.69

Correlation Coefficient

KB Financial  Mobile Lads

Poor diversification

The 3 months correlation between KB Financial and Mobile is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding KB Financial Group and Mobile Lads Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mobile Lads Corp 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 Mobile Lads. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mobile Lads Corp has no effect on the direction of KB Financial i.e., KB Financial and Mobile Lads go up and down completely randomly.

Pair Corralation between KB Financial and Mobile Lads

If you would invest  5,832  in KB Financial Group on October 26, 2024 and sell it today you would earn a total of  380.00  from holding KB Financial Group or generate 6.52% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	90.48%
Values	Daily Returns

KB Financial Group  vs.  Mobile Lads Corp

KB Financial Group

Risk-Adjusted Performance

0 of 100

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 fragile 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.

Mobile Lads Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Mobile Lads Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's fundamental drivers remain very healthy which may send shares a bit higher in February 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with KB Financial and Mobile Lads

The main advantage of trading using opposite KB Financial and Mobile Lads positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KB Financial position performs unexpectedly, Mobile Lads 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 Mobile Lads will offset losses from the drop in Mobile Lads' long position.

The idea behind KB Financial Group and Mobile Lads Corp 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.