Correlation Between KB Financial and Regions Financial
Can any of the company-specific risk be diversified away by investing in both KB Financial and Regions 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 KB Financial and Regions Financial 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 Regions Financial, you can compare the effects of market volatilities on KB Financial and Regions 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 KB Financial with a short position of Regions Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of KB Financial and Regions Financial.
Diversification Opportunities for KB Financial and Regions Financial
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between KB Financial and Regions is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding KB Financial Group and Regions Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Regions Financial 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 Regions Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Regions Financial has no effect on the direction of KB Financial i.e., KB Financial and Regions Financial go up and down completely randomly.
Pair Corralation between KB Financial and Regions Financial
Allowing for the 90-day total investment horizon KB Financial Group is expected to generate 1.26 times more return on investment than Regions Financial. However, KB Financial is 1.26 times more volatile than Regions Financial. It trades about 0.39 of its potential returns per unit of risk. Regions Financial is currently generating about 0.22 per unit of risk. If you would invest 5,114 in KB Financial Group on April 9, 2025 and sell it today you would earn a total of 3,231 from holding KB Financial Group or generate 63.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
KB Financial Group vs. Regions Financial
Performance |
| Timeline |
| KB Financial Group |
| Regions Financial |
KB Financial and Regions Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KB Financial and Regions Financial
The main advantage of trading using opposite KB Financial and Regions Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KB Financial position performs unexpectedly, Regions 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 Regions Financial will offset losses from the drop in Regions Financial's long position.| KB Financial vs. Alto Neuroscience, | KB Financial vs. Datadog | KB Financial vs. Paysafe | KB Financial vs. Uber Technologies |
| Regions Financial vs. ServiceNow | Regions Financial vs. Luxfer Holdings PLC | Regions Financial vs. NextNav Warrant | Regions Financial vs. Hudson Technologies |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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