Correlation Between DFS Furniture and JSC Halyk
Can any of the company-specific risk be diversified away by investing in both DFS Furniture 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 DFS Furniture and JSC Halyk into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DFS Furniture PLC and JSC Halyk bank, you can compare the effects of market volatilities on DFS Furniture 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 DFS Furniture with a short position of JSC Halyk. Check out your portfolio center. Please also check ongoing floating volatility patterns of DFS Furniture and JSC Halyk.
Diversification Opportunities for DFS Furniture and JSC Halyk
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between DFS and JSC is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding DFS Furniture PLC 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 DFS Furniture 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 DFS Furniture PLC 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 DFS Furniture i.e., DFS Furniture and JSC Halyk go up and down completely randomly.
Pair Corralation between DFS Furniture and JSC Halyk
Assuming the 90 days trading horizon DFS Furniture PLC is expected to under-perform the JSC Halyk. But the stock apears to be less risky and, when comparing its historical volatility, DFS Furniture PLC is 1.25 times less risky than JSC Halyk. The stock trades about -0.03 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 1,668 in JSC Halyk bank on October 30, 2024 and sell it today you would earn a total of 242.00 from holding JSC Halyk bank or generate 14.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
DFS Furniture PLC vs. JSC Halyk bank
Performance |
| Timeline |
| DFS Furniture PLC |
| JSC Halyk bank |
DFS Furniture and JSC Halyk Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DFS Furniture and JSC Halyk
The main advantage of trading using opposite DFS Furniture and JSC Halyk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DFS Furniture 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.| DFS Furniture vs. Apple Inc | DFS Furniture vs. Apple Inc | DFS Furniture vs. Apple Inc | DFS Furniture vs. Apple Inc |
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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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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