Correlation Between Brockhaus Capital and JSC Halyk
Can any of the company-specific risk be diversified away by investing in both Brockhaus Capital 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 Brockhaus Capital and JSC Halyk into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Brockhaus Capital Management and JSC Halyk bank, you can compare the effects of market volatilities on Brockhaus Capital 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 Brockhaus Capital with a short position of JSC Halyk. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brockhaus Capital and JSC Halyk.
Diversification Opportunities for Brockhaus Capital and JSC Halyk
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Brockhaus and JSC is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Brockhaus Capital Management 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 Brockhaus Capital 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 Brockhaus Capital Management 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 Brockhaus Capital i.e., Brockhaus Capital and JSC Halyk go up and down completely randomly.
Pair Corralation between Brockhaus Capital and JSC Halyk
Assuming the 90 days trading horizon Brockhaus Capital Management is expected to under-perform the JSC Halyk. But the stock apears to be less risky and, when comparing its historical volatility, Brockhaus Capital Management is 1.72 times less risky than JSC Halyk. The stock trades about -0.07 of its potential returns per unit of risk. The JSC Halyk bank is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 1,750 in JSC Halyk bank on October 24, 2024 and sell it today you would earn a total of 150.00 from holding JSC Halyk bank or generate 8.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Brockhaus Capital Management vs. JSC Halyk bank
Performance |
| Timeline |
| Brockhaus Capital |
| JSC Halyk bank |
Brockhaus Capital and JSC Halyk Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Brockhaus Capital and JSC Halyk
The main advantage of trading using opposite Brockhaus Capital and JSC Halyk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brockhaus Capital 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.| Brockhaus Capital vs. Guangdong Investment Limited | Brockhaus Capital vs. HK Electric Investments | Brockhaus Capital vs. RYANAIR HLDGS ADR | Brockhaus Capital vs. PennantPark Investment |
| JSC Halyk vs. INSURANCE AUST GRP | JSC Halyk vs. Goosehead Insurance | JSC Halyk vs. Coor Service Management | JSC Halyk vs. Brockhaus Capital Management |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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