Correlation Between TBC Bank and KB Financial

Can any of the company-specific risk be diversified away by investing in both TBC Bank 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 TBC Bank and KB Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between TBC Bank Group and KB Financial Group, you can compare the effects of market volatilities on TBC Bank 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 TBC Bank with a short position of KB Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of TBC Bank and KB Financial.

Diversification Opportunities for TBC Bank and KB Financial

-0.64

Correlation Coefficient

TBC Bank  KB Financial

Excellent diversification

The 3 months correlation between TBC and KB Financial is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding TBC Bank Group 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 TBC Bank 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 TBC Bank Group 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 TBC Bank i.e., TBC Bank and KB Financial go up and down completely randomly.

Pair Corralation between TBC Bank and KB Financial

Assuming the 90 days trading horizon TBC Bank Group is expected to generate 0.91 times more return on investment than KB Financial. However, TBC Bank Group is 1.1 times less risky than KB Financial. It trades about 0.2 of its potential returns per unit of risk. KB Financial Group is currently generating about 0.09 per unit of risk. If you would invest  385,000  in TBC Bank Group on September 24, 2025 and sell it today you would earn a total of  21,000  from holding TBC Bank Group or generate 5.45% return on investment over 90 days.

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

TBC Bank Group  vs.  KB Financial Group

TBC Bank Group

Risk-Adjusted Performance

Weakest

Over the last 90 days TBC Bank Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, TBC Bank is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

KB Financial Group

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in KB Financial Group are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite somewhat unsteady fundamental drivers, KB Financial may actually be approaching a critical reversion point that can send shares even higher in January 2026.

Pair Trading with TBC Bank and KB Financial

The main advantage of trading using opposite TBC Bank and KB Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TBC Bank 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.

The idea behind TBC Bank Group and KB Financial Group 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.

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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.