Correlation Between Consumers Bancorp and KB Financial
Can any of the company-specific risk be diversified away by investing in both Consumers Bancorp and KB Financial 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 Consumers Bancorp and KB Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Consumers Bancorp and KB Financial Group, you can compare the effects of market volatilities on Consumers Bancorp and KB Financial 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 Consumers Bancorp with a short position of KB Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Consumers Bancorp and KB Financial.
Diversification Opportunities for Consumers Bancorp and KB Financial
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Consumers and KB Financial is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Consumers Bancorp and KB Financial Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KB Financial Group and Consumers Bancorp 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 Consumers Bancorp are associated (or correlated) with KB Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KB Financial Group has no effect on the direction of Consumers Bancorp i.e., Consumers Bancorp and KB Financial go up and down completely randomly.
Pair Corralation between Consumers Bancorp and KB Financial
If you would invest (100.00) in Consumers Bancorp on January 18, 2024 and sell it today you would earn a total of 100.00 from holding Consumers Bancorp or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Consumers Bancorp vs. KB Financial Group
Performance |
| Timeline |
| Consumers Bancorp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| KB Financial Group |
Consumers Bancorp and KB Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Consumers Bancorp and KB Financial
The main advantage of trading using opposite Consumers Bancorp and KB Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Consumers Bancorp position performs unexpectedly, KB Financial 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 KB Financial will offset losses from the drop in KB Financial's long position.| Consumers Bancorp vs. The First Citizens | Consumers Bancorp vs. Century Next Financial | Consumers Bancorp vs. Citizens Financial Corp | Consumers Bancorp vs. Triad Business Bank |
| KB Financial vs. Banco Bradesco SA | KB Financial vs. Lloyds Banking Group | KB Financial vs. Western Alliance Bancorporation | KB Financial vs. Comerica |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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