Correlation Between AMAG AUSTRIA and JSC Halyk
Can any of the company-specific risk be diversified away by investing in both AMAG AUSTRIA 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 AMAG AUSTRIA and JSC Halyk into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AMAG AUSTRIA M and JSC Halyk bank, you can compare the effects of market volatilities on AMAG AUSTRIA 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 AMAG AUSTRIA with a short position of JSC Halyk. Check out your portfolio center. Please also check ongoing floating volatility patterns of AMAG AUSTRIA and JSC Halyk.
Diversification Opportunities for AMAG AUSTRIA and JSC Halyk
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AMAG and JSC is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding AMAG AUSTRIA M 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 AMAG AUSTRIA 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 AMAG AUSTRIA M 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 AMAG AUSTRIA i.e., AMAG AUSTRIA and JSC Halyk go up and down completely randomly.
Pair Corralation between AMAG AUSTRIA and JSC Halyk
Assuming the 90 days trading horizon AMAG AUSTRIA M is expected to under-perform the JSC Halyk. But the stock apears to be less risky and, when comparing its historical volatility, AMAG AUSTRIA M is 5.59 times less risky than JSC Halyk. The stock trades about -0.15 of its potential returns per unit of risk. The JSC Halyk bank is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,620 in JSC Halyk bank on September 3, 2024 and sell it today you would earn a total of 120.00 from holding JSC Halyk bank or generate 7.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AMAG AUSTRIA M vs. JSC Halyk bank
Performance |
| Timeline |
| AMAG AUSTRIA M |
| JSC Halyk bank |
AMAG AUSTRIA and JSC Halyk Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AMAG AUSTRIA and JSC Halyk
The main advantage of trading using opposite AMAG AUSTRIA and JSC Halyk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AMAG AUSTRIA 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.| AMAG AUSTRIA vs. FANDIFI TECHNOLOGY P | AMAG AUSTRIA vs. NTG Nordic Transport | AMAG AUSTRIA vs. Transport International Holdings | AMAG AUSTRIA vs. SPORT LISBOA E |
| JSC Halyk vs. Alaska Air Group | JSC Halyk vs. ALTAIR RES INC | JSC Halyk vs. NORWEGIAN AIR SHUT | JSC Halyk vs. Enter Air SA |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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