Correlation Between AMG Advanced and Halyk Bank
Can any of the company-specific risk be diversified away by investing in both AMG Advanced 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 AMG Advanced and Halyk Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AMG Advanced Metallurgical and Halyk Bank of, you can compare the effects of market volatilities on AMG Advanced 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 AMG Advanced with a short position of Halyk Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of AMG Advanced and Halyk Bank.
Diversification Opportunities for AMG Advanced and Halyk Bank
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between AMG and Halyk is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding AMG Advanced Metallurgical and Halyk Bank of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Halyk Bank and AMG Advanced 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 AMG Advanced Metallurgical 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 AMG Advanced i.e., AMG Advanced and Halyk Bank go up and down completely randomly.
Pair Corralation between AMG Advanced and Halyk Bank
Assuming the 90 days trading horizon AMG Advanced Metallurgical is expected to generate 1.25 times more return on investment than Halyk Bank. However, AMG Advanced is 1.25 times more volatile than Halyk Bank of. It trades about 0.05 of its potential returns per unit of risk. Halyk Bank of is currently generating about -0.1 per unit of risk. If you would invest 1,455 in AMG Advanced Metallurgical on September 13, 2024 and sell it today you would earn a total of 24.00 from holding AMG Advanced Metallurgical or generate 1.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AMG Advanced Metallurgical vs. Halyk Bank of
Performance |
| Timeline |
| AMG Advanced Metallu |
| Halyk Bank |
AMG Advanced and Halyk Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AMG Advanced and Halyk Bank
The main advantage of trading using opposite AMG Advanced and Halyk Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AMG Advanced 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.| AMG Advanced vs. Jacquet Metal Service | AMG Advanced vs. Edita Food Industries | AMG Advanced vs. Roebuck Food Group | AMG Advanced vs. Golden Metal Resources |
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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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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