Correlation Between 1st Constitution and KB Financial
Can any of the company-specific risk be diversified away by investing in both 1st Constitution 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 1st Constitution and KB Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 1st Constitution Bancorp and KB Financial Group, you can compare the effects of market volatilities on 1st Constitution 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 1st Constitution with a short position of KB Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of 1st Constitution and KB Financial.
Diversification Opportunities for 1st Constitution and KB Financial
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between 1st and KB Financial is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding 1st Constitution Bancorp 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 1st Constitution 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 1st Constitution Bancorp 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 1st Constitution i.e., 1st Constitution and KB Financial go up and down completely randomly.
Pair Corralation between 1st Constitution and KB Financial
If you would invest 3,630 in KB Financial Group on January 17, 2024 and sell it today you would earn a total of 1,083 from holding KB Financial Group or generate 29.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
1st Constitution Bancorp vs. KB Financial Group
Performance |
| Timeline |
| 1st Constitution Bancorp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| KB Financial Group |
1st Constitution and KB Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 1st Constitution and KB Financial
The main advantage of trading using opposite 1st Constitution and KB Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 1st Constitution 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.| 1st Constitution vs. 51Talk Online Education | 1st Constitution vs. Fortress Transp Infra | 1st Constitution vs. John Wiley Sons | 1st Constitution vs. Willscot Mobile Mini |
| KB Financial vs. Woori Financial Group | KB Financial vs. Korea Electric Power | KB Financial vs. Orix Corp Ads | KB Financial vs. SK Telecom Co |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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