Correlation Between JSC Halyk and Fiskars Oyj

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Can any of the company-specific risk be diversified away by investing in both JSC Halyk and Fiskars Oyj 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 Fiskars Oyj 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 Fiskars Oyj Abp, you can compare the effects of market volatilities on JSC Halyk and Fiskars Oyj 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 Fiskars Oyj. Check out your portfolio center. Please also check ongoing floating volatility patterns of JSC Halyk and Fiskars Oyj.

Diversification Opportunities for JSC Halyk and Fiskars Oyj

-0.51
  Correlation Coefficient

Excellent diversification

The 3 months correlation between JSC and Fiskars is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding JSC Halyk bank and Fiskars Oyj Abp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fiskars Oyj Abp 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 Fiskars Oyj. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fiskars Oyj Abp has no effect on the direction of JSC Halyk i.e., JSC Halyk and Fiskars Oyj go up and down completely randomly.

Pair Corralation between JSC Halyk and Fiskars Oyj

Assuming the 90 days trading horizon JSC Halyk bank is expected to generate 2.68 times more return on investment than Fiskars Oyj. However, JSC Halyk is 2.68 times more volatile than Fiskars Oyj Abp. It trades about -0.02 of its potential returns per unit of risk. Fiskars Oyj Abp is currently generating about -0.25 per unit of risk. If you would invest  1,773  in JSC Halyk bank on September 14, 2024 and sell it today you would lose (48.00) from holding JSC Halyk bank or give up 2.71% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

JSC Halyk bank  vs.  Fiskars Oyj Abp

 Performance 
       Timeline  
JSC Halyk bank 

Risk-Adjusted Performance

7 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in JSC Halyk bank are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain essential indicators, JSC Halyk reported solid returns over the last few months and may actually be approaching a breakup point.
Fiskars Oyj Abp 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Fiskars Oyj Abp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

JSC Halyk and Fiskars Oyj Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with JSC Halyk and Fiskars Oyj

The main advantage of trading using opposite JSC Halyk and Fiskars Oyj positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JSC Halyk position performs unexpectedly, Fiskars Oyj 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 Fiskars Oyj will offset losses from the drop in Fiskars Oyj's long position.
The idea behind JSC Halyk bank and Fiskars Oyj Abp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.

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