Correlation Between Gaztransport and Halyk Bank
Can any of the company-specific risk be diversified away by investing in both Gaztransport 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 Gaztransport and Halyk Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gaztransport et Technigaz and Halyk Bank of, you can compare the effects of market volatilities on Gaztransport 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 Gaztransport with a short position of Halyk Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gaztransport and Halyk Bank.
Diversification Opportunities for Gaztransport and Halyk Bank
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gaztransport and Halyk is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Gaztransport et Technigaz and Halyk Bank of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Halyk Bank and Gaztransport 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 Gaztransport et Technigaz 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 Gaztransport i.e., Gaztransport and Halyk Bank go up and down completely randomly.
Pair Corralation between Gaztransport and Halyk Bank
Assuming the 90 days trading horizon Gaztransport et Technigaz is expected to generate 2.77 times more return on investment than Halyk Bank. However, Gaztransport is 2.77 times more volatile than Halyk Bank of. It trades about 0.04 of its potential returns per unit of risk. Halyk Bank of is currently generating about -0.05 per unit of risk. If you would invest 14,600 in Gaztransport et Technigaz on November 28, 2024 and sell it today you would earn a total of 340.00 from holding Gaztransport et Technigaz or generate 2.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gaztransport et Technigaz vs. Halyk Bank of
Performance |
| Timeline |
| Gaztransport et Technigaz |
| Halyk Bank |
Gaztransport and Halyk Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gaztransport and Halyk Bank
The main advantage of trading using opposite Gaztransport and Halyk Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gaztransport 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.| Gaztransport vs. Dolly Varden Silver | Gaztransport vs. Porvair plc | Gaztransport vs. Caledonia Mining | Gaztransport vs. Atalaya Mining |
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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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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