Correlation Between JSC Halyk and Games Workshop
Can any of the company-specific risk be diversified away by investing in both JSC Halyk and Games Workshop 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 Games Workshop 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 Games Workshop Group, you can compare the effects of market volatilities on JSC Halyk and Games Workshop 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 Games Workshop. Check out your portfolio center. Please also check ongoing floating volatility patterns of JSC Halyk and Games Workshop.
Diversification Opportunities for JSC Halyk and Games Workshop
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between JSC and Games is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding JSC Halyk bank and Games Workshop Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Games Workshop Group 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 Games Workshop. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Games Workshop Group has no effect on the direction of JSC Halyk i.e., JSC Halyk and Games Workshop go up and down completely randomly.
Pair Corralation between JSC Halyk and Games Workshop
Assuming the 90 days trading horizon JSC Halyk is expected to generate 1.13 times less return on investment than Games Workshop. But when comparing it to its historical volatility, JSC Halyk bank is 1.05 times less risky than Games Workshop. It trades about 0.13 of its potential returns per unit of risk. Games Workshop Group is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 14,680 in Games Workshop Group on August 27, 2024 and sell it today you would earn a total of 1,790 from holding Games Workshop Group or generate 12.19% 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. Games Workshop Group
Performance |
| Timeline |
| JSC Halyk bank |
| Games Workshop Group |
JSC Halyk and Games Workshop Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JSC Halyk and Games Workshop
The main advantage of trading using opposite JSC Halyk and Games Workshop positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JSC Halyk position performs unexpectedly, Games Workshop 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 Games Workshop will offset losses from the drop in Games Workshop's long position.| JSC Halyk vs. HDFC Bank Limited | JSC Halyk vs. DBS Group Holdings | JSC Halyk vs. State Bank of | JSC Halyk vs. PT Bank Rakyat |
| Games Workshop vs. The Hanover Insurance | Games Workshop vs. JSC Halyk bank | Games Workshop vs. Advanced Medical Solutions | Games Workshop vs. Avanos Medical |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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