Correlation Between KB Financial and QUBICGAMES

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

Diversification Opportunities for KB Financial and QUBICGAMES

-0.31

Correlation Coefficient

KB Financial  QUBICGAMES

Very good diversification

The 3 months correlation between KBIA and QUBICGAMES is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding KB Financial Group and QUBICGAMES SA ZY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on QUBICGAMES SA ZY 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 QUBICGAMES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of QUBICGAMES SA ZY has no effect on the direction of KB Financial i.e., KB Financial and QUBICGAMES go up and down completely randomly.

Pair Corralation between KB Financial and QUBICGAMES

Assuming the 90 days trading horizon KB Financial Group is expected to generate 0.82 times more return on investment than QUBICGAMES. However, KB Financial Group is 1.23 times less risky than QUBICGAMES. It trades about 0.23 of its potential returns per unit of risk. QUBICGAMES SA ZY is currently generating about 0.07 per unit of risk. If you would invest  5,100  in KB Financial Group on April 24, 2025 and sell it today you would earn a total of  1,900  from holding KB Financial Group or generate 37.25% return on investment over 90 days.

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

KB Financial Group  vs.  QUBICGAMES SA ZY

KB Financial Group

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in KB Financial Group are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile forward indicators, KB Financial reported solid returns over the last few months and may actually be approaching a breakup point.

QUBICGAMES SA ZY

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in QUBICGAMES SA ZY are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, QUBICGAMES may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with KB Financial and QUBICGAMES

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

The idea behind KB Financial Group and QUBICGAMES SA ZY 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.