Correlation Between KB Financial and Grayscale Digital

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

Diversification Opportunities for KB Financial and Grayscale Digital

0.0

Correlation Coefficient

KB Financial  Grayscale Digital

Pay attention - limited upside

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

Pair Corralation between KB Financial and Grayscale Digital

If you would invest  6,034  in KB Financial Group on April 27, 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	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

KB Financial Group  vs.  Grayscale Digital Large

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.

Grayscale Digital Large

Risk-Adjusted Performance

Solid

Over the last 90 days Grayscale Digital Large has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound essential indicators, Grayscale Digital is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with KB Financial and Grayscale Digital

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

The idea behind KB Financial Group and Grayscale Digital Large 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.