Correlation Between NN Group and JSC Halyk
Can any of the company-specific risk be diversified away by investing in both NN Group 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 NN Group and JSC Halyk into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NN Group NV and JSC Halyk bank, you can compare the effects of market volatilities on NN Group 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 NN Group with a short position of JSC Halyk. Check out your portfolio center. Please also check ongoing floating volatility patterns of NN Group and JSC Halyk.
Diversification Opportunities for NN Group and JSC Halyk
Pay attention - limited upside
The 3 months correlation between 2NN and JSC is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding NN Group NV 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 NN 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 NN Group NV 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 NN Group i.e., NN Group and JSC Halyk go up and down completely randomly.
Pair Corralation between NN Group and JSC Halyk
Assuming the 90 days horizon NN Group is expected to generate 2.0 times less return on investment than JSC Halyk. But when comparing it to its historical volatility, NN Group NV is 3.22 times less risky than JSC Halyk. It trades about 0.26 of its potential returns per unit of risk. JSC Halyk bank is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 1,750 in JSC Halyk bank on October 24, 2024 and sell it today you would earn a total of 150.00 from holding JSC Halyk bank or generate 8.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NN Group NV vs. JSC Halyk bank
Performance |
| Timeline |
| NN Group NV |
| JSC Halyk bank |
NN Group and JSC Halyk Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NN Group and JSC Halyk
The main advantage of trading using opposite NN Group and JSC Halyk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NN Group 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.| NN Group vs. JSC Halyk bank | NN Group vs. BANK OF CHINA | NN Group vs. SINGAPORE AIRLINES | NN Group vs. Direct Line Insurance |
| JSC Halyk vs. INSURANCE AUST GRP | JSC Halyk vs. Goosehead Insurance | JSC Halyk vs. Coor Service Management | JSC Halyk vs. Brockhaus Capital Management |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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