Correlation Between AMG Advanced and Halyk Bank

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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 Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

AMG Advanced Metallurgical  vs.  Halyk Bank of

 Performance 
       Timeline  
AMG Advanced Metallu 

Risk-Adjusted Performance

1 of 100

 
Weak
 
Strong
Weak
Compared to the overall equity markets, risk-adjusted returns on investments in AMG Advanced Metallurgical are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, AMG Advanced is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.
Halyk Bank 

Risk-Adjusted Performance

10 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Halyk Bank of are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, Halyk Bank may actually be approaching a critical reversion point that can send shares even higher in January 2025.

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.
The idea behind AMG Advanced Metallurgical 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.

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