Correlation Between KB Financial and Tectonic Financial
Can any of the company-specific risk be diversified away by investing in both KB Financial and Tectonic 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 Tectonic 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 Tectonic Financial PR, you can compare the effects of market volatilities on KB Financial and Tectonic 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 Tectonic Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of KB Financial and Tectonic Financial.
Diversification Opportunities for KB Financial and Tectonic Financial
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between KB Financial and Tectonic is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding KB Financial Group and Tectonic Financial PR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tectonic 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 Tectonic Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tectonic Financial has no effect on the direction of KB Financial i.e., KB Financial and Tectonic Financial go up and down completely randomly.
Pair Corralation between KB Financial and Tectonic Financial
Allowing for the 90-day total investment horizon KB Financial Group is expected to generate 4.23 times more return on investment than Tectonic Financial. However, KB Financial is 4.23 times more volatile than Tectonic Financial PR. It trades about 0.4 of its potential returns per unit of risk. Tectonic Financial PR is currently generating about 0.1 per unit of risk. If you would invest 4,641 in KB Financial Group on April 8, 2025 and sell it today you would earn a total of 3,704 from holding KB Financial Group or generate 79.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 98.39% |
| Values | Daily Returns |
KB Financial Group vs. Tectonic Financial PR
Performance |
| Timeline |
| KB Financial Group |
| Tectonic Financial |
KB Financial and Tectonic Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KB Financial and Tectonic Financial
The main advantage of trading using opposite KB Financial and Tectonic Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KB Financial position performs unexpectedly, Tectonic 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 Tectonic Financial will offset losses from the drop in Tectonic Financial's long position.| KB Financial vs. Alto Neuroscience, | KB Financial vs. Datadog | KB Financial vs. Paysafe | KB Financial vs. Uber Technologies |
| Tectonic Financial vs. Axos Financial | Tectonic Financial vs. Byline Bancorp | Tectonic Financial vs. KB Financial Group | Tectonic Financial vs. Nu Holdings |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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