Correlation Between KB Financial and Repligen
Can any of the company-specific risk be diversified away by investing in both KB Financial and Repligen 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 Repligen 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 Repligen, you can compare the effects of market volatilities on KB Financial and Repligen 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 Repligen. Check out your portfolio center. Please also check ongoing floating volatility patterns of KB Financial and Repligen.
Diversification Opportunities for KB Financial and Repligen
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between KB Financial and Repligen is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding KB Financial Group and Repligen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Repligen 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 Repligen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Repligen has no effect on the direction of KB Financial i.e., KB Financial and Repligen go up and down completely randomly.
Pair Corralation between KB Financial and Repligen
Allowing for the 90-day total investment horizon KB Financial Group is expected to generate 0.79 times more return on investment than Repligen. However, KB Financial Group is 1.26 times less risky than Repligen. It trades about 0.26 of its potential returns per unit of risk. Repligen is currently generating about -0.1 per unit of risk. If you would invest 5,860 in KB Financial Group on April 23, 2025 and sell it today you would earn a total of 2,459 from holding KB Financial Group or generate 41.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
KB Financial Group vs. Repligen
Performance |
| Timeline |
| KB Financial Group |
| Repligen |
KB Financial and Repligen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KB Financial and Repligen
The main advantage of trading using opposite KB Financial and Repligen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KB Financial position performs unexpectedly, Repligen 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 Repligen will offset losses from the drop in Repligen's long position.| KB Financial vs. Shinhan Financial Group | KB Financial vs. Woori Financial Group | KB Financial vs. Korea Electric Power | KB Financial vs. Orix Corp Ads |
| Repligen vs. Intuitive Surgical | Repligen vs. ResMed Inc | Repligen vs. Merit Medical Systems | Repligen vs. ICU Medical |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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