Correlation Between JSC Halyk and Airbus SE
Can any of the company-specific risk be diversified away by investing in both JSC Halyk and Airbus SE 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 Airbus SE 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 Airbus SE, you can compare the effects of market volatilities on JSC Halyk and Airbus SE 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 Airbus SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of JSC Halyk and Airbus SE.
Diversification Opportunities for JSC Halyk and Airbus SE
Poor diversification
The 3 months correlation between JSC and Airbus is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding JSC Halyk bank and Airbus SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Airbus SE 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 Airbus SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Airbus SE has no effect on the direction of JSC Halyk i.e., JSC Halyk and Airbus SE go up and down completely randomly.
Pair Corralation between JSC Halyk and Airbus SE
Assuming the 90 days trading horizon JSC Halyk bank is expected to generate 2.41 times more return on investment than Airbus SE. However, JSC Halyk is 2.41 times more volatile than Airbus SE. It trades about 0.16 of its potential returns per unit of risk. Airbus SE is currently generating about 0.23 per unit of risk. If you would invest 1,600 in JSC Halyk bank on September 5, 2024 and sell it today you would earn a total of 200.00 from holding JSC Halyk bank or generate 12.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
JSC Halyk bank vs. Airbus SE
Performance |
| Timeline |
| JSC Halyk bank |
| Airbus SE |
JSC Halyk and Airbus SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JSC Halyk and Airbus SE
The main advantage of trading using opposite JSC Halyk and Airbus SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JSC Halyk position performs unexpectedly, Airbus SE 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 Airbus SE will offset losses from the drop in Airbus SE's long position.The idea behind JSC Halyk bank and Airbus SE 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.| Airbus SE vs. CDN IMPERIAL BANK | Airbus SE vs. Ming Le Sports | Airbus SE vs. JSC Halyk bank | Airbus SE vs. SPORT LISBOA E |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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