Correlation Between KB Financial and Bolt Biotherapeutics

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

Diversification Opportunities for KB Financial and Bolt Biotherapeutics

-0.73

Correlation Coefficient

KB Financial  Bolt Biotherapeutics

Pay attention - limited upside

The 3 months correlation between KB Financial and Bolt is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding KB Financial Group and Bolt Biotherapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bolt Biotherapeutics 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 Bolt Biotherapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bolt Biotherapeutics has no effect on the direction of KB Financial i.e., KB Financial and Bolt Biotherapeutics go up and down completely randomly.

Pair Corralation between KB Financial and Bolt Biotherapeutics

Allowing for the 90-day total investment horizon KB Financial Group is expected to generate 0.55 times more return on investment than Bolt Biotherapeutics. However, KB Financial Group is 1.82 times less risky than Bolt Biotherapeutics. It trades about 0.29 of its potential returns per unit of risk. Bolt Biotherapeutics is currently generating about -0.03 per unit of risk. If you would invest  5,992  in KB Financial Group on April 25, 2025 and sell it today you would earn a total of  3,044  from holding KB Financial Group or generate 50.8% return on investment over 90 days.

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

KB Financial Group  vs.  Bolt Biotherapeutics

KB Financial Group

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in KB Financial Group are ranked lower than 22 (%) of all global equities and portfolios over the last 90 days. Despite somewhat fragile fundamental drivers, KB Financial sustained solid returns over the last few months and may actually be approaching a breakup point.

Bolt Biotherapeutics

Risk-Adjusted Performance

Very Weak

Over the last 90 days Bolt Biotherapeutics has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unsteady performance, the Stock's essential indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with KB Financial and Bolt Biotherapeutics

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

The idea behind KB Financial Group and Bolt Biotherapeutics 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.