Correlation Between JSC Halyk and AIB Group
Can any of the company-specific risk be diversified away by investing in both JSC Halyk and AIB 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 AIB 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 AIB Group plc, you can compare the effects of market volatilities on JSC Halyk and AIB 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 AIB Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of JSC Halyk and AIB Group.
Diversification Opportunities for JSC Halyk and AIB Group
Average diversification
The 3 months correlation between JSC and AIB is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding JSC Halyk bank and AIB Group plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AIB Group plc 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 AIB Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AIB Group plc has no effect on the direction of JSC Halyk i.e., JSC Halyk and AIB Group go up and down completely randomly.
Pair Corralation between JSC Halyk and AIB Group
Assuming the 90 days trading horizon JSC Halyk bank is expected to generate 1.72 times more return on investment than AIB Group. However, JSC Halyk is 1.72 times more volatile than AIB Group plc. It trades about 0.01 of its potential returns per unit of risk. AIB Group plc is currently generating about 0.0 per unit of risk. If you would invest 1,820 in JSC Halyk bank on September 12, 2024 and sell it today you would lose (20.00) from holding JSC Halyk bank or give up 1.1% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JSC Halyk bank vs. AIB Group plc
Performance |
| Timeline |
| JSC Halyk bank |
| AIB Group plc |
JSC Halyk and AIB Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JSC Halyk and AIB Group
The main advantage of trading using opposite JSC Halyk and AIB Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JSC Halyk position performs unexpectedly, AIB 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 AIB Group will offset losses from the drop in AIB Group's long position.| JSC Halyk vs. China Merchants Bank | JSC Halyk vs. HDFC Bank Limited | JSC Halyk vs. ICICI Bank Limited | JSC Halyk vs. PT Bank Central |
| AIB Group vs. Regions Financial | AIB Group vs. JSC Halyk bank | AIB Group vs. Harmony Gold Mining | AIB Group vs. ELMOS SEMICONDUCTOR |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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