Correlation Between KB Financial and RenoWorks Software
Can any of the company-specific risk be diversified away by investing in both KB Financial and RenoWorks Software 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 RenoWorks Software 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 RenoWorks Software, you can compare the effects of market volatilities on KB Financial and RenoWorks Software 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 RenoWorks Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of KB Financial and RenoWorks Software.
Diversification Opportunities for KB Financial and RenoWorks Software
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between KB Financial and RenoWorks is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding KB Financial Group and RenoWorks Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RenoWorks Software 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 RenoWorks Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RenoWorks Software has no effect on the direction of KB Financial i.e., KB Financial and RenoWorks Software go up and down completely randomly.
Pair Corralation between KB Financial and RenoWorks Software
Allowing for the 90-day total investment horizon KB Financial Group is expected to generate 0.13 times more return on investment than RenoWorks Software. However, KB Financial Group is 7.61 times less risky than RenoWorks Software. It trades about 0.11 of its potential returns per unit of risk. RenoWorks Software is currently generating about -0.12 per unit of risk. If you would invest 8,013 in KB Financial Group on October 23, 2025 and sell it today you would earn a total of 890.00 from holding KB Financial Group or generate 11.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.36% |
| Values | Daily Returns |
KB Financial Group vs. RenoWorks Software
Performance |
| Timeline |
| KB Financial Group |
| RenoWorks Software |
KB Financial and RenoWorks Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KB Financial and RenoWorks Software
The main advantage of trading using opposite KB Financial and RenoWorks Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KB Financial position performs unexpectedly, RenoWorks Software 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 RenoWorks Software will offset losses from the drop in RenoWorks Software's long position.| KB Financial vs. Avidia Bancorp | KB Financial vs. Avidbank Holdings Common | KB Financial vs. Beacon Financial | KB Financial vs. 1895 of Wisconsin |
| RenoWorks Software vs. ProStar Holdings | RenoWorks Software vs. GivBux Inc | RenoWorks Software vs. Webstar Technology Group | RenoWorks Software vs. NamSys Inc |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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