Correlation Between JSC Halyk and NN Group
Can any of the company-specific risk be diversified away by investing in both JSC Halyk and NN Group 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 JSC Halyk and NN Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JSC Halyk bank and NN Group NV, you can compare the effects of market volatilities on JSC Halyk and NN Group 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 JSC Halyk with a short position of NN Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of JSC Halyk and NN Group.
Diversification Opportunities for JSC Halyk and NN Group
Excellent diversification
The 3 months correlation between JSC and 2NN is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding JSC Halyk bank and NN Group NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NN Group NV and JSC Halyk 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 JSC Halyk bank are associated (or correlated) with NN Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NN Group NV has no effect on the direction of JSC Halyk i.e., JSC Halyk and NN Group go up and down completely randomly.
Pair Corralation between JSC Halyk and NN Group
Assuming the 90 days trading horizon JSC Halyk bank is expected to under-perform the NN Group. In addition to that, JSC Halyk is 2.51 times more volatile than NN Group NV. It trades about -0.04 of its total potential returns per unit of risk. NN Group NV is currently generating about 0.2 per unit of volatility. If you would invest 4,226 in NN Group NV on November 3, 2024 and sell it today you would earn a total of 191.00 from holding NN Group NV or generate 4.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
JSC Halyk bank vs. NN Group NV
Performance |
| Timeline |
| JSC Halyk bank |
| NN Group NV |
JSC Halyk and NN Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JSC Halyk and NN Group
The main advantage of trading using opposite JSC Halyk and NN Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JSC Halyk position performs unexpectedly, NN Group 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 NN Group will offset losses from the drop in NN Group's long position.| JSC Halyk vs. TRADEGATE | JSC Halyk vs. TRADELINK ELECTRON | JSC Halyk vs. Tradeweb Markets | JSC Halyk vs. FAST RETAIL ADR |
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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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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