Correlation Between Endo International and Halyk Bank
Can any of the company-specific risk be diversified away by investing in both Endo International 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 Endo International and Halyk Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Endo International PLC and Halyk Bank of, you can compare the effects of market volatilities on Endo International 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 Endo International with a short position of Halyk Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Endo International and Halyk Bank.
Diversification Opportunities for Endo International and Halyk Bank
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Endo and Halyk is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Endo International PLC and Halyk Bank of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Halyk Bank and Endo International 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 Endo International PLC 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 Endo International i.e., Endo International and Halyk Bank go up and down completely randomly.
Pair Corralation between Endo International and Halyk Bank
Assuming the 90 days trading horizon Endo International is expected to generate 1.34 times less return on investment than Halyk Bank. But when comparing it to its historical volatility, Endo International PLC is 1.94 times less risky than Halyk Bank. It trades about 0.3 of its potential returns per unit of risk. Halyk Bank of is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 1,852 in Halyk Bank of on October 21, 2024 and sell it today you would earn a total of 124.00 from holding Halyk Bank of or generate 6.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 94.74% |
| Values | Daily Returns |
Endo International PLC vs. Halyk Bank of
Performance |
| Timeline |
| Endo International PLC |
| Halyk Bank |
Endo International and Halyk Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Endo International and Halyk Bank
The main advantage of trading using opposite Endo International and Halyk Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Endo International 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.| Endo International vs. Zoom Video Communications | Endo International vs. Enbridge | Endo International vs. Ithaca Energy PLC | Endo International vs. Somero Enterprise |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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