Correlation Between PT Bank and JSC Halyk
Can any of the company-specific risk be diversified away by investing in both PT Bank 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 PT Bank and JSC Halyk into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PT Bank Central and JSC Halyk bank, you can compare the effects of market volatilities on PT Bank 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 PT Bank with a short position of JSC Halyk. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Bank and JSC Halyk.
Diversification Opportunities for PT Bank and JSC Halyk
Good diversification
The 3 months correlation between BZG2 and JSC is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding PT Bank Central 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 PT 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 PT Bank Central 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 PT Bank i.e., PT Bank and JSC Halyk go up and down completely randomly.
Pair Corralation between PT Bank and JSC Halyk
Assuming the 90 days trading horizon PT Bank Central is expected to under-perform the JSC Halyk. But the stock apears to be less risky and, when comparing its historical volatility, PT Bank Central is 1.22 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 0.13 of returns per unit of risk over similar time horizon. If you would invest 1,630 in JSC Halyk bank on August 29, 2024 and sell it today you would earn a total of 170.00 from holding JSC Halyk bank or generate 10.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PT Bank Central vs. JSC Halyk bank
Performance |
| Timeline |
| PT Bank Central |
| JSC Halyk bank |
PT Bank and JSC Halyk Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Bank and JSC Halyk
The main advantage of trading using opposite PT Bank and JSC Halyk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Bank 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.The idea behind PT Bank Central and JSC Halyk bank pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| JSC Halyk vs. Lifeway Foods | JSC Halyk vs. SMA Solar Technology | JSC Halyk vs. Food Life Companies | JSC Halyk vs. X FAB Silicon Foundries |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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