Correlation Between Bankers Investment and Halyk Bank
Can any of the company-specific risk be diversified away by investing in both Bankers Investment 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 Bankers Investment and Halyk Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bankers Investment Trust and Halyk Bank of, you can compare the effects of market volatilities on Bankers Investment 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 Bankers Investment with a short position of Halyk Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bankers Investment and Halyk Bank.
Diversification Opportunities for Bankers Investment and Halyk Bank
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bankers and Halyk is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Bankers Investment Trust and Halyk Bank of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Halyk Bank and Bankers Investment 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 Bankers Investment Trust 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 Bankers Investment i.e., Bankers Investment and Halyk Bank go up and down completely randomly.
Pair Corralation between Bankers Investment and Halyk Bank
Assuming the 90 days trading horizon Bankers Investment is expected to generate 5.74 times less return on investment than Halyk Bank. But when comparing it to its historical volatility, Bankers Investment Trust is 2.68 times less risky than Halyk Bank. It trades about 0.14 of its potential returns per unit of risk. Halyk Bank of is currently generating about 0.3 of returns per unit of risk over similar time horizon. If you would invest 1,771 in Halyk Bank of on August 24, 2024 and sell it today you would earn a total of 175.00 from holding Halyk Bank of or generate 9.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bankers Investment Trust vs. Halyk Bank of
Performance |
| Timeline |
| Bankers Investment Trust |
| Halyk Bank |
Bankers Investment and Halyk Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bankers Investment and Halyk Bank
The main advantage of trading using opposite Bankers Investment and Halyk Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bankers Investment 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.| Bankers Investment vs. Samsung Electronics Co | Bankers Investment vs. Samsung Electronics Co | Bankers Investment vs. Toyota Motor Corp | Bankers Investment vs. Reliance Industries Ltd |
| Halyk Bank vs. Samsung Electronics Co | Halyk Bank vs. Samsung Electronics Co | Halyk Bank vs. Toyota Motor Corp | Halyk Bank vs. Reliance Industries 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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