Correlation Between BW Offshore and Halyk Bank
Can any of the company-specific risk be diversified away by investing in both BW Offshore 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 BW Offshore and Halyk Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BW Offshore and Halyk Bank of, you can compare the effects of market volatilities on BW Offshore 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 BW Offshore with a short position of Halyk Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of BW Offshore and Halyk Bank.
Diversification Opportunities for BW Offshore and Halyk Bank
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between 0RKH and Halyk is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding BW Offshore and Halyk Bank of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Halyk Bank and BW Offshore 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 BW Offshore 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 BW Offshore i.e., BW Offshore and Halyk Bank go up and down completely randomly.
Pair Corralation between BW Offshore and Halyk Bank
Assuming the 90 days trading horizon BW Offshore is expected to generate 1.92 times less return on investment than Halyk Bank. In addition to that, BW Offshore is 2.03 times more volatile than Halyk Bank of. It trades about 0.03 of its total potential returns per unit of risk. Halyk Bank of is currently generating about 0.13 per unit of volatility. If you would invest 804.00 in Halyk Bank of on August 30, 2024 and sell it today you would earn a total of 1,100 from holding Halyk Bank of or generate 136.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 98.59% |
| Values | Daily Returns |
BW Offshore vs. Halyk Bank of
Performance |
| Timeline |
| BW Offshore |
| Halyk Bank |
BW Offshore and Halyk Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BW Offshore and Halyk Bank
The main advantage of trading using opposite BW Offshore and Halyk Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BW Offshore 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.| BW Offshore vs. Lendinvest PLC | BW Offshore vs. Neometals | BW Offshore vs. Albion Technology General | BW Offshore vs. Jupiter Fund Management |
| Halyk Bank vs. Take Two Interactive Software | Halyk Bank vs. BW Offshore | Halyk Bank vs. CVS Health Corp | Halyk Bank vs. Oakley Capital Investments |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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