Correlation Between KB Financial and Calamos LongShort

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

Diversification Opportunities for KB Financial and Calamos LongShort

0.73

Correlation Coefficient

KB Financial  Calamos LongShort

Poor diversification

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

Pair Corralation between KB Financial and Calamos LongShort

Allowing for the 90-day total investment horizon KB Financial Group is expected to generate 4.36 times more return on investment than Calamos LongShort. However, KB Financial is 4.36 times more volatile than Calamos LongShort Equity. It trades about 0.24 of its potential returns per unit of risk. Calamos LongShort Equity is currently generating about 0.23 per unit of risk. If you would invest  6,034  in KB Financial Group on April 28, 2025 and sell it today you would earn a total of  2,557  from holding KB Financial Group or generate 42.38% return on investment over 90 days.

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

KB Financial Group  vs.  Calamos LongShort Equity

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 18 (%) 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.

Calamos LongShort Equity

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Calamos LongShort Equity are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Calamos LongShort may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with KB Financial and Calamos LongShort

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

The idea behind KB Financial Group and Calamos LongShort Equity 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.