Correlation Between SoftBank Group and Halyk Bank
Can any of the company-specific risk be diversified away by investing in both SoftBank Group 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 SoftBank Group and Halyk Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SoftBank Group Corp and Halyk Bank of, you can compare the effects of market volatilities on SoftBank Group 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 SoftBank Group with a short position of Halyk Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of SoftBank Group and Halyk Bank.
Diversification Opportunities for SoftBank Group and Halyk Bank
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between SoftBank and Halyk is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding SoftBank Group 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 SoftBank Group 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 SoftBank Group 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 SoftBank Group i.e., SoftBank Group and Halyk Bank go up and down completely randomly.
Pair Corralation between SoftBank Group and Halyk Bank
Assuming the 90 days trading horizon SoftBank Group Corp is expected to under-perform the Halyk Bank. In addition to that, SoftBank Group is 1.15 times more volatile than Halyk Bank of. It trades about -0.19 of its total potential returns per unit of risk. Halyk Bank of is currently generating about 0.09 per unit of volatility. If you would invest 1,791 in Halyk Bank of on September 1, 2024 and sell it today you would earn a total of 61.00 from holding Halyk Bank of or generate 3.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 77.27% |
| Values | Daily Returns |
SoftBank Group Corp vs. Halyk Bank of
Performance |
| Timeline |
| SoftBank Group Corp |
| Halyk Bank |
SoftBank Group and Halyk Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SoftBank Group and Halyk Bank
The main advantage of trading using opposite SoftBank Group and Halyk Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SoftBank Group 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.| SoftBank Group vs. Blackrock World Mining | SoftBank Group vs. Batm Advanced Communications | SoftBank Group vs. GoldMining | SoftBank Group vs. Gamma Communications PLC |
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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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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