Correlation Between JSC Halyk and Archer Daniels
Can any of the company-specific risk be diversified away by investing in both JSC Halyk and Archer Daniels 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 Archer Daniels 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 Archer Daniels Midland, you can compare the effects of market volatilities on JSC Halyk and Archer Daniels 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 Archer Daniels. Check out your portfolio center. Please also check ongoing floating volatility patterns of JSC Halyk and Archer Daniels.
Diversification Opportunities for JSC Halyk and Archer Daniels
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between JSC and Archer is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding JSC Halyk bank and Archer Daniels Midland in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Archer Daniels Midland 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 Archer Daniels. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Archer Daniels Midland has no effect on the direction of JSC Halyk i.e., JSC Halyk and Archer Daniels go up and down completely randomly.
Pair Corralation between JSC Halyk and Archer Daniels
Assuming the 90 days trading horizon JSC Halyk bank is expected to generate 2.91 times more return on investment than Archer Daniels. However, JSC Halyk is 2.91 times more volatile than Archer Daniels Midland. It trades about 0.07 of its potential returns per unit of risk. Archer Daniels Midland is currently generating about -0.08 per unit of risk. If you would invest 1,543 in JSC Halyk bank on October 26, 2024 and sell it today you would earn a total of 407.00 from holding JSC Halyk bank or generate 26.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JSC Halyk bank vs. Archer Daniels Midland
Performance |
| Timeline |
| JSC Halyk bank |
| Archer Daniels Midland |
JSC Halyk and Archer Daniels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JSC Halyk and Archer Daniels
The main advantage of trading using opposite JSC Halyk and Archer Daniels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JSC Halyk position performs unexpectedly, Archer Daniels 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 Archer Daniels will offset losses from the drop in Archer Daniels' long position.| JSC Halyk vs. Westinghouse Air Brake | JSC Halyk vs. Martin Marietta Materials | JSC Halyk vs. SYSTEMAIR AB | JSC Halyk vs. THRACE PLASTICS |
| Archer Daniels vs. UNIQA INSURANCE GR | Archer Daniels vs. JSC Halyk bank | Archer Daniels vs. Ameriprise Financial | Archer Daniels vs. Chiba 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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