Correlation Between JSC Halyk and Euronext
Can any of the company-specific risk be diversified away by investing in both JSC Halyk and Euronext 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 Euronext 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 Euronext NV, you can compare the effects of market volatilities on JSC Halyk and Euronext 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 Euronext. Check out your portfolio center. Please also check ongoing floating volatility patterns of JSC Halyk and Euronext.
Diversification Opportunities for JSC Halyk and Euronext
Poor diversification
The 3 months correlation between JSC and Euronext is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding JSC Halyk bank and Euronext NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Euronext NV 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 Euronext. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Euronext NV has no effect on the direction of JSC Halyk i.e., JSC Halyk and Euronext go up and down completely randomly.
Pair Corralation between JSC Halyk and Euronext
Assuming the 90 days trading horizon JSC Halyk bank is expected to under-perform the Euronext. In addition to that, JSC Halyk is 2.67 times more volatile than Euronext NV. It trades about -0.02 of its total potential returns per unit of risk. Euronext NV is currently generating about 0.29 per unit of volatility. If you would invest 9,715 in Euronext NV on September 14, 2024 and sell it today you would earn a total of 875.00 from holding Euronext NV or generate 9.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JSC Halyk bank vs. Euronext NV
Performance |
| Timeline |
| JSC Halyk bank |
| Euronext NV |
JSC Halyk and Euronext Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JSC Halyk and Euronext
The main advantage of trading using opposite JSC Halyk and Euronext positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JSC Halyk position performs unexpectedly, Euronext 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 Euronext will offset losses from the drop in Euronext's long position.| JSC Halyk vs. AGNC INVESTMENT | JSC Halyk vs. HK Electric Investments | JSC Halyk vs. Gamma Communications plc | JSC Halyk vs. Entravision Communications |
| Euronext vs. PT Bank Maybank | Euronext vs. JSC Halyk bank | Euronext vs. Aozora Bank | Euronext vs. Perseus Mining 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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