Correlation Between Southern Copper and Halyk Bank

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Can any of the company-specific risk be diversified away by investing in both Southern Copper 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 Southern Copper and Halyk Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Southern Copper Corp and Halyk Bank of, you can compare the effects of market volatilities on Southern Copper 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 Southern Copper with a short position of Halyk Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Southern Copper and Halyk Bank.

Diversification Opportunities for Southern Copper and Halyk Bank

-0.62
  Correlation Coefficient

Excellent diversification

The 3 months correlation between Southern and Halyk is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Southern Copper Corp and Halyk Bank of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Halyk Bank and Southern Copper 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 Southern Copper Corp 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 Southern Copper i.e., Southern Copper and Halyk Bank go up and down completely randomly.

Pair Corralation between Southern Copper and Halyk Bank

Assuming the 90 days trading horizon Southern Copper is expected to generate 1.52 times less return on investment than Halyk Bank. In addition to that, Southern Copper is 1.81 times more volatile than Halyk Bank of. It trades about 0.06 of its total potential returns per unit of risk. Halyk Bank of is currently generating about 0.15 per unit of volatility. If you would invest  1,668  in Halyk Bank of on September 12, 2024 and sell it today you would earn a total of  224.00  from holding Halyk Bank of or generate 13.43% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Southern Copper Corp  vs.  Halyk Bank of

 Performance 
       Timeline  
Southern Copper Corp 

Risk-Adjusted Performance

4 of 100

 
Weak
 
Strong
Insignificant
Compared to the overall equity markets, risk-adjusted returns on investments in Southern Copper Corp are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Southern Copper may actually be approaching a critical reversion point that can send shares even higher in January 2025.
Halyk Bank 

Risk-Adjusted Performance

12 of 100

 
Weak
 
Strong
Good
Compared to the overall equity markets, risk-adjusted returns on investments in Halyk Bank of are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, Halyk Bank unveiled solid returns over the last few months and may actually be approaching a breakup point.

Southern Copper and Halyk Bank Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Southern Copper and Halyk Bank

The main advantage of trading using opposite Southern Copper and Halyk Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Southern Copper 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.
The idea behind Southern Copper Corp and Halyk Bank of pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.

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