Correlation Between KB Financial and Luminar Technologies

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

Diversification Opportunities for KB Financial and Luminar Technologies

-0.8

Correlation Coefficient

KB Financial  Luminar Technologies

Pay attention - limited upside

The 3 months correlation between KB Financial and Luminar is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding KB Financial Group and Luminar Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Luminar Technologies 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 Luminar Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Luminar Technologies has no effect on the direction of KB Financial i.e., KB Financial and Luminar Technologies go up and down completely randomly.

Pair Corralation between KB Financial and Luminar Technologies

Allowing for the 90-day total investment horizon KB Financial Group is expected to generate 0.47 times more return on investment than Luminar Technologies. However, KB Financial Group is 2.11 times less risky than Luminar Technologies. It trades about 0.14 of its potential returns per unit of risk. Luminar Technologies is currently generating about -0.14 per unit of risk. If you would invest  6,621  in KB Financial Group on May 11, 2025 and sell it today you would earn a total of  1,587  from holding KB Financial Group or generate 23.97% return on investment over 90 days.

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

KB Financial Group  vs.  Luminar Technologies

KB Financial Group

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in KB Financial Group are ranked lower than 11 (%) 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.

Luminar Technologies

Risk-Adjusted Performance

Weakest

Over the last 90 days Luminar Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in September 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with KB Financial and Luminar Technologies

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

The idea behind KB Financial Group and Luminar Technologies 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.