Correlation Between KB Financial and SunPower
Can any of the company-specific risk be diversified away by investing in both KB Financial and SunPower 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 SunPower 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 SunPower, you can compare the effects of market volatilities on KB Financial and SunPower 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 SunPower. Check out your portfolio center. Please also check ongoing floating volatility patterns of KB Financial and SunPower.
Diversification Opportunities for KB Financial and SunPower
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between KB Financial and SunPower is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding KB Financial Group and SunPower in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SunPower 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 SunPower. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SunPower has no effect on the direction of KB Financial i.e., KB Financial and SunPower go up and down completely randomly.
Pair Corralation between KB Financial and SunPower
If you would invest 5,958 in KB Financial Group on October 24, 2024 and sell it today you would earn a total of 309.50 from holding KB Financial Group or generate 5.19% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 0.0% |
Values | Daily Returns |
KB Financial Group vs. SunPower
Performance |
Timeline |
KB Financial Group |
SunPower |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
KB Financial and SunPower Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with KB Financial and SunPower
The main advantage of trading using opposite KB Financial and SunPower positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KB Financial position performs unexpectedly, SunPower 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 SunPower will offset losses from the drop in SunPower's long position.KB Financial vs. Shinhan Financial Group | KB Financial vs. Woori Financial Group | KB Financial vs. Korea Electric Power | KB Financial vs. Orix Corp Ads |
SunPower vs. Enphase Energy | SunPower vs. First Solar | SunPower vs. Sunnova Energy International | SunPower vs. SolarEdge Technologies |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
Positions Ratings 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 | |
Global Correlations Find global opportunities by holding instruments from different markets | |
Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |