Correlation Between EMBARK EDUCATION and JSC Halyk
Can any of the company-specific risk be diversified away by investing in both EMBARK EDUCATION 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 EMBARK EDUCATION and JSC Halyk into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EMBARK EDUCATION LTD and JSC Halyk bank, you can compare the effects of market volatilities on EMBARK EDUCATION 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 EMBARK EDUCATION with a short position of JSC Halyk. Check out your portfolio center. Please also check ongoing floating volatility patterns of EMBARK EDUCATION and JSC Halyk.
Diversification Opportunities for EMBARK EDUCATION and JSC Halyk
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between EMBARK and JSC is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding EMBARK EDUCATION LTD 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 EMBARK EDUCATION 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 EMBARK EDUCATION LTD 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 EMBARK EDUCATION i.e., EMBARK EDUCATION and JSC Halyk go up and down completely randomly.
Pair Corralation between EMBARK EDUCATION and JSC Halyk
Assuming the 90 days horizon EMBARK EDUCATION is expected to generate 4.51 times less return on investment than JSC Halyk. But when comparing it to its historical volatility, EMBARK EDUCATION LTD is 2.69 times less risky than JSC Halyk. It trades about 0.04 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 702.00 in JSC Halyk bank on October 11, 2024 and sell it today you would earn a total of 1,248 from holding JSC Halyk bank or generate 177.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.8% |
| Values | Daily Returns |
EMBARK EDUCATION LTD vs. JSC Halyk bank
Performance |
| Timeline |
| EMBARK EDUCATION LTD |
| JSC Halyk bank |
EMBARK EDUCATION and JSC Halyk Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EMBARK EDUCATION and JSC Halyk
The main advantage of trading using opposite EMBARK EDUCATION and JSC Halyk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EMBARK EDUCATION 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.| EMBARK EDUCATION vs. WIMFARM SA EO | EMBARK EDUCATION vs. MagnaChip Semiconductor Corp | EMBARK EDUCATION vs. Tower Semiconductor | EMBARK EDUCATION vs. Dairy Farm International |
| JSC Halyk vs. Scottish Mortgage Investment | JSC Halyk vs. CHRYSALIS INVESTMENTS LTD | JSC Halyk vs. Laureate Education | JSC Halyk vs. EMBARK EDUCATION LTD |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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