Correlation Between KB Financial and QuantumSi
Can any of the company-specific risk be diversified away by investing in both KB Financial and QuantumSi 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 QuantumSi 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 QuantumSi, you can compare the effects of market volatilities on KB Financial and QuantumSi 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 QuantumSi. Check out your portfolio center. Please also check ongoing floating volatility patterns of KB Financial and QuantumSi.
Diversification Opportunities for KB Financial and QuantumSi
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between KB Financial and QuantumSi is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding KB Financial Group and QuantumSi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on QuantumSi 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 QuantumSi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of QuantumSi has no effect on the direction of KB Financial i.e., KB Financial and QuantumSi go up and down completely randomly.
Pair Corralation between KB Financial and QuantumSi
Allowing for the 90-day total investment horizon KB Financial is expected to generate 1.56 times less return on investment than QuantumSi. But when comparing it to its historical volatility, KB Financial Group is 2.96 times less risky than QuantumSi. It trades about 0.26 of its potential returns per unit of risk. QuantumSi is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 123.00 in QuantumSi on April 25, 2025 and sell it today you would earn a total of 65.00 from holding QuantumSi or generate 52.85% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
KB Financial Group vs. QuantumSi
Performance |
Timeline |
KB Financial Group |
QuantumSi |
KB Financial and QuantumSi Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with KB Financial and QuantumSi
The main advantage of trading using opposite KB Financial and QuantumSi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KB Financial position performs unexpectedly, QuantumSi 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 QuantumSi will offset losses from the drop in QuantumSi's long position.KB Financial vs. Shinhan Financial Group | KB Financial vs. Woori Financial Group | KB Financial vs. Korea Electric Power | KB Financial vs. Orix Corp Ads |
QuantumSi vs. Nautilus Biotechnology | QuantumSi vs. Caribou Biosciences | QuantumSi vs. Q32 Bio | QuantumSi vs. Precision BioSciences |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
Bonds Directory Find actively traded corporate debentures issued by US companies | |
Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
Risk-Return Analysis View associations between returns expected from investment and the risk you assume |