Correlation Between Gaming and JSC Halyk
Can any of the company-specific risk be diversified away by investing in both Gaming and JSC Halyk 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 Gaming and JSC Halyk into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gaming and Leisure and JSC Halyk bank, you can compare the effects of market volatilities on Gaming and JSC Halyk 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 Gaming with a short position of JSC Halyk. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gaming and JSC Halyk.
Diversification Opportunities for Gaming and JSC Halyk
Good diversification
The 3 months correlation between Gaming and JSC is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Gaming and Leisure and JSC Halyk bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JSC Halyk bank and 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 Gaming and Leisure are associated (or correlated) with JSC Halyk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JSC Halyk bank has no effect on the direction of Gaming i.e., Gaming and JSC Halyk go up and down completely randomly.
Pair Corralation between Gaming and JSC Halyk
Assuming the 90 days horizon Gaming is expected to generate 10.7 times less return on investment than JSC Halyk. But when comparing it to its historical volatility, Gaming and Leisure is 3.2 times less risky than JSC Halyk. It trades about 0.02 of its potential returns per unit of risk. JSC Halyk bank is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 786.00 in JSC Halyk bank on October 29, 2024 and sell it today you would earn a total of 1,124 from holding JSC Halyk bank or generate 143.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gaming and Leisure vs. JSC Halyk bank
Performance |
| Timeline |
| Gaming and Leisure |
| JSC Halyk bank |
Gaming and JSC Halyk Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gaming and JSC Halyk
The main advantage of trading using opposite Gaming and JSC Halyk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gaming position performs unexpectedly, JSC Halyk 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 JSC Halyk will offset losses from the drop in JSC Halyk's long position.The idea behind Gaming and Leisure and JSC Halyk bank pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| JSC Halyk vs. Salesforce | JSC Halyk vs. CODERE ONLINE LUX | JSC Halyk vs. Erste Group Bank | JSC Halyk vs. PACIFIC ONLINE |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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