42.2 +0.14 (+0.33%) Sell

Looking to invest in KB? Consider it, because it showed marginal outperformance

13 min read

KB outperformed the broader market today. On a longer term basis, investors in KB FINANCIAL GROUP INC. (Foreign) made +0.02% per day. Friday's performance of +0.33% was a outperformance compared to it's daily average.

[Themes containing KB]

KB showed a bearish trend over the last 3 months. During this period KB fell by -6.41% and saw a maximum drawdown of -20.06%. There were 2 short signals during this period that returned a cumulative of +5.28% to investors.


KB has been outperforming the SP500 index in recent time. It showed significant outperformance (compared to the SP500 index) from 25 Feb, 2016 to 12 Jan, 2018. Over the last 2 years 11 months and 10 days, KB outperformed the SP500 index on 52% days.

During the last three months KB delivered profits on 50% days. However, it still managed to end this period in a loss. It's best return during this period (of +3.66%) was on Thursday, 1 Nov, 2018. While it's worst loss in the same period (of -4.81%) was on Tuesday, 30 Oct, 2018. The longest stort-term trends during this period were 5 profitable and losing days. The bullish trend (which returned +4.91%) started on 17 Sep, 2018 and went on till 21 Sep, 2018 while the bearish trend (which returned -5.37%) started on 9 Oct, 2018 and went on till 15 Oct, 2018.

During the last year KB had 6 profitable months and 6 loss making months. KB returned profits in fewer months than SP500 index. KB was also a more risky investment than SP500 index as it's worst month in the last year, Oct 2018, returned -16.25% compared to -7.28% returned by SP500 index in Oct 2018. KB had a shorter streak of profitable months than SP500 index. It only went up in 2 straight months during the last year. It is interesting to note that both KB and SP500 index significantly outperform during months when quarterly/annual results are announced.

Annual income twenty pounds, annual expenditure nineteen six, result happiness. Annual income twenty pounds, annual expenditure twenty pound ought and six, result misery.
-- Charles Dickens

KB is currently seeing overall increase in volatility. In comparison, the SP500 index is seeing increase in volatility. During the last three months, there was a significant surge in KB's volatility from 25 Sep, 2018 to 10 Dec, 2018. While there was a significant surge in the SP500 index's volatility from 25 Sep, 2018 to 29 Oct, 2018.

Advanced/professional short-term investors should note that KB has significant positive skewness in it's return distribution. This indicates that investors can expect KB to recover from drawdowns quickly. Which makes KB a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.

KB has more chance of extreme outcomes than the SP500 index. Therefore, KB must receive a lower allocation than SP500 in your portfolio. SP500 index usually has shorter drawdown period than KB.

Based on your interest in KB you may find it interesting to know that PMBC has delivered similar performance as KB and can be considered as an alternative investment candidate (to KB).

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