Correlation Between BANKINTER ADR and JSC Halyk
Can any of the company-specific risk be diversified away by investing in both BANKINTER ADR 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 BANKINTER ADR and JSC Halyk into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BANKINTER ADR 2007 and JSC Halyk bank, you can compare the effects of market volatilities on BANKINTER ADR 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 BANKINTER ADR with a short position of JSC Halyk. Check out your portfolio center. Please also check ongoing floating volatility patterns of BANKINTER ADR and JSC Halyk.
Diversification Opportunities for BANKINTER ADR and JSC Halyk
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BANKINTER and JSC is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding BANKINTER ADR 2007 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 BANKINTER ADR 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 BANKINTER ADR 2007 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 BANKINTER ADR i.e., BANKINTER ADR and JSC Halyk go up and down completely randomly.
Pair Corralation between BANKINTER ADR and JSC Halyk
Assuming the 90 days horizon BANKINTER ADR 2007 is expected to under-perform the JSC Halyk. But the stock apears to be less risky and, when comparing its historical volatility, BANKINTER ADR 2007 is 2.2 times less risky than JSC Halyk. The stock trades about -0.05 of its potential returns per unit of risk. The JSC Halyk bank is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,630 in JSC Halyk bank on September 2, 2024 and sell it today you would earn a total of 110.00 from holding JSC Halyk bank or generate 6.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BANKINTER ADR 2007 vs. JSC Halyk bank
Performance |
| Timeline |
| BANKINTER ADR 2007 |
| JSC Halyk bank |
BANKINTER ADR and JSC Halyk Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BANKINTER ADR and JSC Halyk
The main advantage of trading using opposite BANKINTER ADR and JSC Halyk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BANKINTER ADR 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.| BANKINTER ADR vs. Apple Inc | BANKINTER ADR vs. Apple Inc | BANKINTER ADR vs. Apple Inc | BANKINTER ADR vs. Apple Inc |
| JSC Halyk vs. IDP EDUCATION LTD | JSC Halyk vs. TROPHY GAMES DEV | JSC Halyk vs. CHINA EDUCATION GROUP | JSC Halyk vs. Adtalem Global Education |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |