Correlation Between KB Financial and Synlogic

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

Diversification Opportunities for KB Financial and Synlogic

-0.5

Correlation Coefficient

KB Financial  Synlogic

Very good diversification

The 3 months correlation between KB Financial and Synlogic is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding KB Financial Group and Synlogic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Synlogic 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 Synlogic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Synlogic has no effect on the direction of KB Financial i.e., KB Financial and Synlogic go up and down completely randomly.

Pair Corralation between KB Financial and Synlogic

Allowing for the 90-day total investment horizon KB Financial Group is expected to generate 0.35 times more return on investment than Synlogic. However, KB Financial Group is 2.89 times less risky than Synlogic. It trades about -0.03 of its potential returns per unit of risk. Synlogic is currently generating about -0.37 per unit of risk. If you would invest  8,538  in KB Financial Group on September 18, 2025 and sell it today you would lose (117.00) from holding KB Financial Group or give up 1.37% of portfolio value over 90 days.

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

KB Financial Group  vs.  Synlogic

KB Financial Group

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in KB Financial Group are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong fundamental drivers, KB Financial is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Synlogic

Risk-Adjusted Performance

Weakest

Over the last 90 days Synlogic has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's fundamental drivers remain fairly strong which may send shares a bit higher in January 2026. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with KB Financial and Synlogic

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

The idea behind KB Financial Group and Synlogic 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 Transaction History module to view history of all your transactions and understand their impact on performance.