Correlation Between KB Financial and Cardax

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

Diversification Opportunities for KB Financial and Cardax

0.0

Correlation Coefficient

KB Financial  Cardax

Pay attention - limited upside

The 3 months correlation between KB Financial and Cardax is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding KB Financial Group and Cardax Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cardax Inc 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 Cardax. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cardax Inc has no effect on the direction of KB Financial i.e., KB Financial and Cardax go up and down completely randomly.

Pair Corralation between KB Financial and Cardax

If you would invest  6,572  in KB Financial Group on May 4, 2025 and sell it today you would earn a total of  1,196  from holding KB Financial Group or generate 18.2% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

KB Financial Group  vs.  Cardax Inc

KB Financial Group

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in KB Financial Group are ranked lower than 8 (%) 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.

Cardax Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Cardax Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, Cardax is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with KB Financial and Cardax

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

The idea behind KB Financial Group and Cardax Inc 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 Transaction History module to view history of all your transactions and understand their impact on performance.