Correlation Between KB Financial and Super Micro

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

Diversification Opportunities for KB Financial and Super Micro

0.86

Correlation Coefficient

KB Financial  Super Micro

Very poor diversification

The 3 months correlation between KB Financial and Super is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding KB Financial Group and Super Micro Computer in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Super Micro Computer 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 Super Micro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Super Micro Computer has no effect on the direction of KB Financial i.e., KB Financial and Super Micro go up and down completely randomly.

Pair Corralation between KB Financial and Super Micro

Allowing for the 90-day total investment horizon KB Financial is expected to generate 2.27 times less return on investment than Super Micro. But when comparing it to its historical volatility, KB Financial Group is 1.9 times less risky than Super Micro. It trades about 0.19 of its potential returns per unit of risk. Super Micro Computer is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest  4,156  in Super Micro Computer on April 14, 2025 and sell it today you would earn a total of  768.00  from holding Super Micro Computer or generate 18.48% 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.  Super Micro Computer

KB Financial Group

Risk-Adjusted Performance

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in KB Financial Group are ranked lower than 27 (%) 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.

Super Micro Computer

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Super Micro Computer are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite fairly weak fundamental indicators, Super Micro demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with KB Financial and Super Micro

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

The idea behind KB Financial Group and Super Micro Computer 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.