Correlation Between Axis Bank and Halyk Bank
Can any of the company-specific risk be diversified away by investing in both Axis Bank 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 Axis Bank and Halyk Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Axis Bank Ltd and Halyk Bank of, you can compare the effects of market volatilities on Axis Bank 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 Axis Bank with a short position of Halyk Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Axis Bank and Halyk Bank.
Diversification Opportunities for Axis Bank and Halyk Bank
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Axis and Halyk is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Axis Bank Ltd and Halyk Bank of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Halyk Bank and Axis Bank 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 Axis Bank Ltd 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 Axis Bank i.e., Axis Bank and Halyk Bank go up and down completely randomly.
Pair Corralation between Axis Bank and Halyk Bank
Assuming the 90 days trading horizon Axis Bank Ltd is expected to under-perform the Halyk Bank. But the stock apears to be less risky and, when comparing its historical volatility, Axis Bank Ltd is 1.83 times less risky than Halyk Bank. The stock trades about -0.12 of its potential returns per unit of risk. The Halyk Bank of is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 1,791 in Halyk Bank of on September 1, 2024 and sell it today you would earn a total of 61.00 from holding Halyk Bank of or generate 3.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Axis Bank Ltd vs. Halyk Bank of
Performance |
| Timeline |
| Axis Bank |
| Halyk Bank |
Axis Bank and Halyk Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Axis Bank and Halyk Bank
The main advantage of trading using opposite Axis Bank and Halyk Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Axis Bank 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.| Axis Bank vs. G5 Entertainment AB | Axis Bank vs. XLMedia PLC | Axis Bank vs. Zinc Media Group | Axis Bank vs. Liberty Media Corp |
| Halyk Bank vs. Associated British Foods | Halyk Bank vs. Molson Coors Beverage | Halyk Bank vs. Fevertree Drinks Plc | Halyk Bank vs. Monster Beverage 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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