Correlation Between Evolution Gaming and Halyk Bank
Can any of the company-specific risk be diversified away by investing in both Evolution Gaming 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 Evolution Gaming and Halyk Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Evolution Gaming Group and Halyk Bank of, you can compare the effects of market volatilities on Evolution Gaming 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 Evolution Gaming with a short position of Halyk Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Evolution Gaming and Halyk Bank.
Diversification Opportunities for Evolution Gaming and Halyk Bank
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Evolution and Halyk is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Evolution Gaming Group and Halyk Bank of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Halyk Bank and Evolution Gaming 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 Evolution Gaming Group 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 Evolution Gaming i.e., Evolution Gaming and Halyk Bank go up and down completely randomly.
Pair Corralation between Evolution Gaming and Halyk Bank
Assuming the 90 days trading horizon Evolution Gaming Group is expected to under-perform the Halyk Bank. But the stock apears to be less risky and, when comparing its historical volatility, Evolution Gaming Group is 1.89 times less risky than Halyk Bank. The stock trades about -0.17 of its potential returns per unit of risk. The Halyk Bank of is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 1,754 in Halyk Bank of on August 30, 2024 and sell it today you would earn a total of 150.00 from holding Halyk Bank of or generate 8.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Evolution Gaming Group vs. Halyk Bank of
Performance |
| Timeline |
| Evolution Gaming |
| Halyk Bank |
Evolution Gaming and Halyk Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Evolution Gaming and Halyk Bank
The main advantage of trading using opposite Evolution Gaming and Halyk Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Evolution Gaming 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.| Evolution Gaming vs. Lendinvest PLC | Evolution Gaming vs. Neometals | Evolution Gaming vs. Albion Technology General | Evolution Gaming vs. Jupiter Fund Management |
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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 Stocks Directory module to find actively traded stocks across global markets.
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