Correlation Between JSC Halyk and Canadian Utilities
Can any of the company-specific risk be diversified away by investing in both JSC Halyk and Canadian Utilities 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 Canadian Utilities 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 Canadian Utilities Limited, you can compare the effects of market volatilities on JSC Halyk and Canadian Utilities 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 Canadian Utilities. Check out your portfolio center. Please also check ongoing floating volatility patterns of JSC Halyk and Canadian Utilities.
Diversification Opportunities for JSC Halyk and Canadian Utilities
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between JSC and Canadian is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding JSC Halyk bank and Canadian Utilities Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Canadian Utilities 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 Canadian Utilities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Canadian Utilities has no effect on the direction of JSC Halyk i.e., JSC Halyk and Canadian Utilities go up and down completely randomly.
Pair Corralation between JSC Halyk and Canadian Utilities
Assuming the 90 days trading horizon JSC Halyk bank is expected to generate 3.17 times more return on investment than Canadian Utilities. However, JSC Halyk is 3.17 times more volatile than Canadian Utilities Limited. It trades about 0.11 of its potential returns per unit of risk. Canadian Utilities Limited is currently generating about 0.15 per unit of risk. If you would invest 1,650 in JSC Halyk bank on August 31, 2024 and sell it today you would earn a total of 140.00 from holding JSC Halyk bank or generate 8.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
JSC Halyk bank vs. Canadian Utilities Limited
Performance |
| Timeline |
| JSC Halyk bank |
| Canadian Utilities |
JSC Halyk and Canadian Utilities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JSC Halyk and Canadian Utilities
The main advantage of trading using opposite JSC Halyk and Canadian Utilities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JSC Halyk position performs unexpectedly, Canadian Utilities 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 Canadian Utilities will offset losses from the drop in Canadian Utilities' long position.| JSC Halyk vs. China Merchants Bank | JSC Halyk vs. PT Bank Central | JSC Halyk vs. State Bank of | JSC Halyk vs. PT Bank Rakyat |
| Canadian Utilities vs. LGI Homes | Canadian Utilities vs. Haier Smart Home | Canadian Utilities vs. JJ SNACK FOODS | Canadian Utilities vs. DFS Furniture PLC |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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