Correlation Between JSC Halyk and AECOM TECHNOLOGY
Can any of the company-specific risk be diversified away by investing in both JSC Halyk and AECOM TECHNOLOGY 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 AECOM TECHNOLOGY 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 AECOM TECHNOLOGY, you can compare the effects of market volatilities on JSC Halyk and AECOM TECHNOLOGY 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 AECOM TECHNOLOGY. Check out your portfolio center. Please also check ongoing floating volatility patterns of JSC Halyk and AECOM TECHNOLOGY.
Diversification Opportunities for JSC Halyk and AECOM TECHNOLOGY
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between JSC and AECOM is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding JSC Halyk bank and AECOM TECHNOLOGY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AECOM TECHNOLOGY 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 AECOM TECHNOLOGY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AECOM TECHNOLOGY has no effect on the direction of JSC Halyk i.e., JSC Halyk and AECOM TECHNOLOGY go up and down completely randomly.
Pair Corralation between JSC Halyk and AECOM TECHNOLOGY
Assuming the 90 days trading horizon JSC Halyk bank is expected to generate 3.45 times more return on investment than AECOM TECHNOLOGY. However, JSC Halyk is 3.45 times more volatile than AECOM TECHNOLOGY. It trades about 0.12 of its potential returns per unit of risk. AECOM TECHNOLOGY is currently generating about -0.16 per unit of risk. If you would invest 1,790 in JSC Halyk bank on October 16, 2024 and sell it today you would earn a total of 100.00 from holding JSC Halyk bank or generate 5.59% 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. AECOM TECHNOLOGY
Performance |
| Timeline |
| JSC Halyk bank |
| AECOM TECHNOLOGY |
JSC Halyk and AECOM TECHNOLOGY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JSC Halyk and AECOM TECHNOLOGY
The main advantage of trading using opposite JSC Halyk and AECOM TECHNOLOGY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JSC Halyk position performs unexpectedly, AECOM TECHNOLOGY 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 AECOM TECHNOLOGY will offset losses from the drop in AECOM TECHNOLOGY's long position.| JSC Halyk vs. RCS MediaGroup SpA | JSC Halyk vs. Nexstar Media Group | JSC Halyk vs. DFS Furniture PLC | JSC Halyk vs. KENEDIX OFFICE INV |
| AECOM TECHNOLOGY vs. Federal Agricultural Mortgage | AECOM TECHNOLOGY vs. WIMFARM SA EO | AECOM TECHNOLOGY vs. SLR Investment Corp | AECOM TECHNOLOGY vs. Guangdong Investment Limited |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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