Correlation Between JSC Halyk and Bank of America
Can any of the company-specific risk be diversified away by investing in both JSC Halyk and Bank of America 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 Bank of America 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 Verizon Communications, you can compare the effects of market volatilities on JSC Halyk and Bank of America 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 Bank of America. Check out your portfolio center. Please also check ongoing floating volatility patterns of JSC Halyk and Bank of America.
Diversification Opportunities for JSC Halyk and Bank of America
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between JSC and Bank is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding JSC Halyk bank and Verizon Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Verizon Communications 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 Bank of America. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Verizon Communications has no effect on the direction of JSC Halyk i.e., JSC Halyk and Bank of America go up and down completely randomly.
Pair Corralation between JSC Halyk and Bank of America
Assuming the 90 days trading horizon JSC Halyk bank is expected to generate 3.0 times more return on investment than Bank of America. However, JSC Halyk is 3.0 times more volatile than Verizon Communications. It trades about 0.11 of its potential returns per unit of risk. Verizon Communications is currently generating about -0.03 per unit of risk. If you would invest 1,553 in JSC Halyk bank on October 12, 2024 and sell it today you would earn a total of 347.00 from holding JSC Halyk bank or generate 22.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 98.33% |
| Values | Daily Returns |
JSC Halyk bank vs. Verizon Communications
Performance |
| Timeline |
| JSC Halyk bank |
| Verizon Communications |
JSC Halyk and Bank of America Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JSC Halyk and Bank of America
The main advantage of trading using opposite JSC Halyk and Bank of America positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JSC Halyk position performs unexpectedly, Bank of America 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 Bank of America will offset losses from the drop in Bank of America's long position.| JSC Halyk vs. Wayside Technology Group | JSC Halyk vs. Treasury Wine Estates | JSC Halyk vs. Align Technology | JSC Halyk vs. Casio Computer CoLtd |
| Bank of America vs. Ameriprise Financial | Bank of America vs. JSC Halyk bank | Bank of America vs. UNIQA INSURANCE GR | Bank of America vs. GREENX METALS LTD |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |