Correlation Between JSC Halyk and NEXON
Can any of the company-specific risk be diversified away by investing in both JSC Halyk and NEXON 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 NEXON 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 NEXON Co, you can compare the effects of market volatilities on JSC Halyk and NEXON 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 NEXON. Check out your portfolio center. Please also check ongoing floating volatility patterns of JSC Halyk and NEXON.
Diversification Opportunities for JSC Halyk and NEXON
Pay attention - limited upside
The 3 months correlation between JSC and NEXON is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding JSC Halyk bank and NEXON Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NEXON 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 NEXON. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NEXON has no effect on the direction of JSC Halyk i.e., JSC Halyk and NEXON go up and down completely randomly.
Pair Corralation between JSC Halyk and NEXON
Assuming the 90 days trading horizon JSC Halyk bank is expected to generate 1.6 times more return on investment than NEXON. However, JSC Halyk is 1.6 times more volatile than NEXON Co. It trades about 0.17 of its potential returns per unit of risk. NEXON Co is currently generating about -0.01 per unit of risk. If you would invest 1,706 in JSC Halyk bank on October 11, 2024 and sell it today you would earn a total of 174.00 from holding JSC Halyk bank or generate 10.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 94.44% |
| Values | Daily Returns |
JSC Halyk bank vs. NEXON Co
Performance |
| Timeline |
| JSC Halyk bank |
| NEXON |
JSC Halyk and NEXON Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JSC Halyk and NEXON
The main advantage of trading using opposite JSC Halyk and NEXON positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JSC Halyk position performs unexpectedly, NEXON 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 NEXON will offset losses from the drop in NEXON's long position.| JSC Halyk vs. Commercial Vehicle Group | JSC Halyk vs. Cogent Communications Holdings | JSC Halyk vs. ARDAGH METAL PACDL 0001 | JSC Halyk vs. GRIFFIN MINING LTD |
| NEXON vs. JSC Halyk bank | NEXON vs. Synovus Financial Corp | NEXON vs. CONTAGIOUS GAMING INC | NEXON vs. SUN LIFE FINANCIAL |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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