Correlation Between JSC Halyk and Equity Residential
Can any of the company-specific risk be diversified away by investing in both JSC Halyk and Equity Residential 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 Equity Residential 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 Equity Residential, you can compare the effects of market volatilities on JSC Halyk and Equity Residential 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 Equity Residential. Check out your portfolio center. Please also check ongoing floating volatility patterns of JSC Halyk and Equity Residential.
Diversification Opportunities for JSC Halyk and Equity Residential
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between JSC and Equity is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding JSC Halyk bank and Equity Residential in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Equity Residential 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 Equity Residential. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Equity Residential has no effect on the direction of JSC Halyk i.e., JSC Halyk and Equity Residential go up and down completely randomly.
Pair Corralation between JSC Halyk and Equity Residential
Assuming the 90 days trading horizon JSC Halyk bank is expected to generate 3.19 times more return on investment than Equity Residential. However, JSC Halyk is 3.19 times more volatile than Equity Residential. It trades about 0.16 of its potential returns per unit of risk. Equity Residential is currently generating about -0.2 per unit of risk. If you would invest 1,725 in JSC Halyk bank on October 1, 2024 and sell it today you would earn a total of 175.00 from holding JSC Halyk bank or generate 10.14% 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. Equity Residential
Performance |
| Timeline |
| JSC Halyk bank |
| Equity Residential |
JSC Halyk and Equity Residential Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JSC Halyk and Equity Residential
The main advantage of trading using opposite JSC Halyk and Equity Residential positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JSC Halyk position performs unexpectedly, Equity Residential 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 Equity Residential will offset losses from the drop in Equity Residential's long position.| JSC Halyk vs. China Merchants Bank | JSC Halyk vs. ICICI Bank Limited | JSC Halyk vs. PT Bank Central | JSC Halyk vs. DBS Group Holdings |
| Equity Residential vs. AvalonBay Communities | Equity Residential vs. INVITATION HOMES DL | Equity Residential vs. Sun Communities | Equity Residential vs. Essex Property Trust |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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