Correlation Between JSC Halyk and Bridgestone
Can any of the company-specific risk be diversified away by investing in both JSC Halyk and Bridgestone 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 Bridgestone 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 Bridgestone, you can compare the effects of market volatilities on JSC Halyk and Bridgestone 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 Bridgestone. Check out your portfolio center. Please also check ongoing floating volatility patterns of JSC Halyk and Bridgestone.
Diversification Opportunities for JSC Halyk and Bridgestone
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between JSC and Bridgestone is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding JSC Halyk bank and Bridgestone in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bridgestone 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 Bridgestone. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bridgestone has no effect on the direction of JSC Halyk i.e., JSC Halyk and Bridgestone go up and down completely randomly.
Pair Corralation between JSC Halyk and Bridgestone
Assuming the 90 days trading horizon JSC Halyk bank is expected to generate 2.63 times more return on investment than Bridgestone. However, JSC Halyk is 2.63 times more volatile than Bridgestone. It trades about 0.07 of its potential returns per unit of risk. Bridgestone is currently generating about 0.01 per unit of risk. If you would invest 723.00 in JSC Halyk bank on October 27, 2024 and sell it today you would earn a total of 1,187 from holding JSC Halyk bank or generate 164.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
JSC Halyk bank vs. Bridgestone
Performance |
| Timeline |
| JSC Halyk bank |
| Bridgestone |
JSC Halyk and Bridgestone Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JSC Halyk and Bridgestone
The main advantage of trading using opposite JSC Halyk and Bridgestone positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JSC Halyk position performs unexpectedly, Bridgestone 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 Bridgestone will offset losses from the drop in Bridgestone's long position.| JSC Halyk vs. CanSino Biologics | JSC Halyk vs. BRIT AMER TOBACCO | JSC Halyk vs. WillScot Mobile Mini | JSC Halyk vs. Air Lease |
| Bridgestone vs. CHINA SOUTHN AIR H | Bridgestone vs. Pentair plc | Bridgestone vs. REINET INVESTMENTS SCA | Bridgestone vs. HK Electric Investments |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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