Correlation Between JSC Halyk and Dow
Can any of the company-specific risk be diversified away by investing in both JSC Halyk and Dow 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 Dow 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 Dow Inc, you can compare the effects of market volatilities on JSC Halyk and Dow 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 Dow. Check out your portfolio center. Please also check ongoing floating volatility patterns of JSC Halyk and Dow.
Diversification Opportunities for JSC Halyk and Dow
Excellent diversification
The 3 months correlation between JSC and Dow is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding JSC Halyk bank and Dow Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Inc 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 Dow. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Inc has no effect on the direction of JSC Halyk i.e., JSC Halyk and Dow go up and down completely randomly.
Pair Corralation between JSC Halyk and Dow
Assuming the 90 days trading horizon JSC Halyk bank is expected to generate 2.85 times more return on investment than Dow. However, JSC Halyk is 2.85 times more volatile than Dow Inc. It trades about 0.06 of its potential returns per unit of risk. Dow Inc is currently generating about -0.02 per unit of risk. If you would invest 1,183 in JSC Halyk bank on August 29, 2024 and sell it today you would earn a total of 617.00 from holding JSC Halyk bank or generate 52.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
JSC Halyk bank vs. Dow Inc
Performance |
| Timeline |
| JSC Halyk bank |
| Dow Inc |
JSC Halyk and Dow Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JSC Halyk and Dow
The main advantage of trading using opposite JSC Halyk and Dow positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JSC Halyk position performs unexpectedly, Dow 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 Dow will offset losses from the drop in Dow's long position.| JSC Halyk vs. Lifeway Foods | JSC Halyk vs. SMA Solar Technology | JSC Halyk vs. Food Life Companies | JSC Halyk vs. X FAB Silicon Foundries |
| Dow vs. Sunstone Hotel Investors | Dow vs. COMINTL BANK ADR1 | Dow vs. HYATT HOTELS A | Dow vs. JSC Halyk bank |
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 Stocks Directory module to find actively traded stocks across global markets.
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