Correlation Between 88 Energy and Halyk Bank
Can any of the company-specific risk be diversified away by investing in both 88 Energy 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 88 Energy and Halyk Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 88 Energy and Halyk Bank of, you can compare the effects of market volatilities on 88 Energy 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 88 Energy with a short position of Halyk Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of 88 Energy and Halyk Bank.
Diversification Opportunities for 88 Energy and Halyk Bank
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between 88E and Halyk is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding 88 Energy and Halyk Bank of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Halyk Bank and 88 Energy 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 88 Energy 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 88 Energy i.e., 88 Energy and Halyk Bank go up and down completely randomly.
Pair Corralation between 88 Energy and Halyk Bank
Assuming the 90 days trading horizon 88 Energy is expected to under-perform the Halyk Bank. In addition to that, 88 Energy is 1.1 times more volatile than Halyk Bank of. It trades about -0.11 of its total potential returns per unit of risk. Halyk Bank of is currently generating about 0.14 per unit of volatility. If you would invest 1,776 in Halyk Bank of on August 31, 2024 and sell it today you would earn a total of 96.00 from holding Halyk Bank of or generate 5.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
88 Energy vs. Halyk Bank of
Performance |
| Timeline |
| 88 Energy |
| Halyk Bank |
88 Energy and Halyk Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 88 Energy and Halyk Bank
The main advantage of trading using opposite 88 Energy and Halyk Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 88 Energy 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.| 88 Energy vs. International Biotechnology Trust | 88 Energy vs. Endeavour Mining Corp | 88 Energy vs. Spotify Technology SA | 88 Energy vs. AMG Advanced Metallurgical |
| Halyk Bank vs. Sunny Optical Technology | Halyk Bank vs. DXC Technology Co | Halyk Bank vs. Cognizant Technology Solutions | Halyk Bank vs. Raytheon Technologies Corp |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |