Correlation Between Banco Macro and KB Financial

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

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

Diversification Opportunities for Banco Macro and KB Financial

-0.77

Correlation Coefficient

Banco Macro  KB Financial

Pay attention - limited upside

The 3 months correlation between Banco and KB Financial is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Banco Macro SA 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 Banco Macro 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 Banco Macro SA 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 Banco Macro i.e., Banco Macro and KB Financial go up and down completely randomly.

Pair Corralation between Banco Macro and KB Financial

Considering the 90-day investment horizon Banco Macro SA is expected to under-perform the KB Financial. In addition to that, Banco Macro is 1.09 times more volatile than KB Financial Group. It trades about -0.16 of its total potential returns per unit of risk. KB Financial Group is currently generating about 0.06 per unit of volatility. If you would invest  7,358  in KB Financial Group on May 26, 2025 and sell it today you would earn a total of  625.00  from holding KB Financial Group or generate 8.49% return on investment over 90 days.

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

Banco Macro SA  vs.  KB Financial Group

Banco Macro SA

Risk-Adjusted Performance

Weakest

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

KB Financial Group

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in KB Financial Group are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite somewhat fragile fundamental drivers, KB Financial may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Banco Macro and KB Financial

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

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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.