Correlation Between First Majestic and Halyk Bank
Can any of the company-specific risk be diversified away by investing in both First Majestic 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 First Majestic and Halyk Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First Majestic Silver and Halyk Bank of, you can compare the effects of market volatilities on First Majestic 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 First Majestic with a short position of Halyk Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Majestic and Halyk Bank.
Diversification Opportunities for First Majestic and Halyk Bank
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between First and Halyk is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding First Majestic Silver and Halyk Bank of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Halyk Bank and First Majestic 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 First Majestic Silver 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 First Majestic i.e., First Majestic and Halyk Bank go up and down completely randomly.
Pair Corralation between First Majestic and Halyk Bank
Assuming the 90 days trading horizon First Majestic Silver is expected to generate 2.35 times more return on investment than Halyk Bank. However, First Majestic is 2.35 times more volatile than Halyk Bank of. It trades about 0.13 of its potential returns per unit of risk. Halyk Bank of is currently generating about 0.19 per unit of risk. If you would invest 796.00 in First Majestic Silver on October 23, 2024 and sell it today you would earn a total of 65.00 from holding First Majestic Silver or generate 8.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
First Majestic Silver vs. Halyk Bank of
Performance |
| Timeline |
| First Majestic Silver |
| Halyk Bank |
First Majestic and Halyk Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Majestic and Halyk Bank
The main advantage of trading using opposite First Majestic and Halyk Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Majestic 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.| First Majestic vs. Edinburgh Investment Trust | First Majestic vs. JPMorgan Japanese Investment | First Majestic vs. Clean Power Hydrogen | First Majestic vs. Jupiter Green Investment |
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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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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