Correlation Between KB Financial and Indaptus Therapeutics

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

Diversification Opportunities for KB Financial and Indaptus Therapeutics

-0.51

Correlation Coefficient

KB Financial  Indaptus Therapeutics

Excellent diversification

The 3 months correlation between KB Financial and Indaptus is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding KB Financial Group and Indaptus Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Indaptus Therapeutics 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 Indaptus Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Indaptus Therapeutics has no effect on the direction of KB Financial i.e., KB Financial and Indaptus Therapeutics go up and down completely randomly.

Pair Corralation between KB Financial and Indaptus Therapeutics

Allowing for the 90-day total investment horizon KB Financial Group is expected to generate 0.17 times more return on investment than Indaptus Therapeutics. However, KB Financial Group is 5.88 times less risky than Indaptus Therapeutics. It trades about 0.27 of its potential returns per unit of risk. Indaptus Therapeutics is currently generating about 0.04 per unit of risk. If you would invest  5,724  in KB Financial Group on April 20, 2025 and sell it today you would earn a total of  2,550  from holding KB Financial Group or generate 44.55% return on investment over 90 days.

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

KB Financial Group  vs.  Indaptus Therapeutics

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 21 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak fundamental drivers, KB Financial sustained solid returns over the last few months and may actually be approaching a breakup point.

Indaptus Therapeutics

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Indaptus Therapeutics are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Even with relatively unfluctuating fundamental indicators, Indaptus Therapeutics reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with KB Financial and Indaptus Therapeutics

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

The idea behind KB Financial Group and Indaptus Therapeutics 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.