Correlation Between United Internet and Halyk Bank
Can any of the company-specific risk be diversified away by investing in both United Internet and Halyk Bank 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 United Internet and Halyk Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between United Internet AG and Halyk Bank of, you can compare the effects of market volatilities on United Internet and Halyk Bank 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 United Internet with a short position of Halyk Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Internet and Halyk Bank.
Diversification Opportunities for United Internet and Halyk Bank
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between United and Halyk is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding United Internet AG and Halyk Bank of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Halyk Bank and United Internet 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 United Internet AG are associated (or correlated) with Halyk Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Halyk Bank has no effect on the direction of United Internet i.e., United Internet and Halyk Bank go up and down completely randomly.
Pair Corralation between United Internet and Halyk Bank
Assuming the 90 days trading horizon United Internet AG is expected to under-perform the Halyk Bank. In addition to that, United Internet is 1.25 times more volatile than Halyk Bank of. It trades about -0.17 of its total potential returns per unit of risk. Halyk Bank of is currently generating about 0.16 per unit of volatility. If you would invest 1,684 in Halyk Bank of on October 26, 2024 and sell it today you would earn a total of 316.00 from holding Halyk Bank of or generate 18.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
United Internet AG vs. Halyk Bank of
Performance |
| Timeline |
| United Internet AG |
| Halyk Bank |
United Internet and Halyk Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United Internet and Halyk Bank
The main advantage of trading using opposite United Internet and Halyk Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Internet position performs unexpectedly, Halyk Bank 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 Halyk Bank will offset losses from the drop in Halyk Bank's long position.| United Internet vs. Molson Coors Beverage | United Internet vs. Pentair PLC | United Internet vs. Pets at Home | United Internet vs. Young Cos Brewery |
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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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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