Correlation Between SIDETRADE and JSC Halyk
Can any of the company-specific risk be diversified away by investing in both SIDETRADE 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 SIDETRADE and JSC Halyk into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SIDETRADE EO 1 and JSC Halyk bank, you can compare the effects of market volatilities on SIDETRADE 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 SIDETRADE with a short position of JSC Halyk. Check out your portfolio center. Please also check ongoing floating volatility patterns of SIDETRADE and JSC Halyk.
Diversification Opportunities for SIDETRADE and JSC Halyk
Modest diversification
The 3 months correlation between SIDETRADE and JSC is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding SIDETRADE EO 1 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 SIDETRADE 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 SIDETRADE EO 1 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 SIDETRADE i.e., SIDETRADE and JSC Halyk go up and down completely randomly.
Pair Corralation between SIDETRADE and JSC Halyk
Assuming the 90 days horizon SIDETRADE is expected to generate 2.48 times less return on investment than JSC Halyk. But when comparing it to its historical volatility, SIDETRADE EO 1 is 1.85 times less risky than JSC Halyk. It trades about 0.05 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 723.00 in JSC Halyk bank on October 27, 2024 and sell it today you would earn a total of 1,187 from holding JSC Halyk bank or generate 164.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SIDETRADE EO 1 vs. JSC Halyk bank
Performance |
| Timeline |
| SIDETRADE EO 1 |
| JSC Halyk bank |
SIDETRADE and JSC Halyk Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SIDETRADE and JSC Halyk
The main advantage of trading using opposite SIDETRADE and JSC Halyk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SIDETRADE 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.| SIDETRADE vs. MAVEN WIRELESS SWEDEN | SIDETRADE vs. Spirent Communications plc | SIDETRADE vs. Ribbon Communications | SIDETRADE vs. BORR DRILLING NEW |
| JSC Halyk vs. CanSino Biologics | JSC Halyk vs. BRIT AMER TOBACCO | JSC Halyk vs. WillScot Mobile Mini | JSC Halyk vs. Air Lease |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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