Correlation Between KB Financial and Priorityome Fund

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

Diversification Opportunities for KB Financial and Priorityome Fund

-0.41

Correlation Coefficient

KB Financial  Priorityome Fund

Very good diversification

The 3 months correlation between KB Financial and Priorityome is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding KB Financial Group and Priorityome Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Priorityome Fund 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 Priorityome Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Priorityome Fund has no effect on the direction of KB Financial i.e., KB Financial and Priorityome Fund go up and down completely randomly.

Pair Corralation between KB Financial and Priorityome Fund

Allowing for the 90-day total investment horizon KB Financial Group is expected to under-perform the Priorityome Fund. In addition to that, KB Financial is 1.87 times more volatile than Priorityome Fund. It trades about -0.16 of its total potential returns per unit of risk. Priorityome Fund is currently generating about 0.09 per unit of volatility. If you would invest  2,408  in Priorityome Fund on October 7, 2024 and sell it today you would earn a total of  31.00  from holding Priorityome Fund or generate 1.29% 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.  Priorityome Fund

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.

Priorityome Fund

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Priorityome Fund are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable technical and fundamental indicators, Priorityome Fund is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with KB Financial and Priorityome Fund

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

The idea behind KB Financial Group and Priorityome Fund 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.