Correlation Between KB Financial and Wanderport Corp

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

Diversification Opportunities for KB Financial and Wanderport Corp

-0.44

Correlation Coefficient

KB Financial  Wanderport Corp

Very good diversification

The 3 months correlation between KB Financial and Wanderport is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding KB Financial Group and Wanderport Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wanderport Corp 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 Wanderport Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wanderport Corp has no effect on the direction of KB Financial i.e., KB Financial and Wanderport Corp go up and down completely randomly.

Pair Corralation between KB Financial and Wanderport Corp

Allowing for the 90-day total investment horizon KB Financial is expected to generate 1.59 times less return on investment than Wanderport Corp. But when comparing it to its historical volatility, KB Financial Group is 4.49 times less risky than Wanderport Corp. It trades about 0.11 of its potential returns per unit of risk. Wanderport Corp is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  0.07  in Wanderport Corp on May 20, 2025 and sell it today you would lose (0.01) from holding Wanderport Corp or give up 14.29% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.41%
Values	Daily Returns

KB Financial Group  vs.  Wanderport Corp

KB Financial Group

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in KB Financial Group are ranked lower than 8 (%) 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.

Wanderport Corp

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Wanderport Corp are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Even with relatively unsteady basic indicators, Wanderport Corp reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with KB Financial and Wanderport Corp

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

The idea behind KB Financial Group and Wanderport Corp 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.