Correlation Between JSC Halyk and Global Payments
Can any of the company-specific risk be diversified away by investing in both JSC Halyk and Global Payments 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 Global Payments 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 Global Payments, you can compare the effects of market volatilities on JSC Halyk and Global Payments 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 Global Payments. Check out your portfolio center. Please also check ongoing floating volatility patterns of JSC Halyk and Global Payments.
Diversification Opportunities for JSC Halyk and Global Payments
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between JSC and Global is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding JSC Halyk bank and Global Payments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Payments 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 Global Payments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Payments has no effect on the direction of JSC Halyk i.e., JSC Halyk and Global Payments go up and down completely randomly.
Pair Corralation between JSC Halyk and Global Payments
Assuming the 90 days trading horizon JSC Halyk is expected to generate 1.69 times less return on investment than Global Payments. In addition to that, JSC Halyk is 1.39 times more volatile than Global Payments. It trades about 0.12 of its total potential returns per unit of risk. Global Payments is currently generating about 0.28 per unit of volatility. If you would invest 9,500 in Global Payments on September 4, 2024 and sell it today you would earn a total of 1,730 from holding Global Payments or generate 18.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
JSC Halyk bank vs. Global Payments
Performance |
| Timeline |
| JSC Halyk bank |
| Global Payments |
JSC Halyk and Global Payments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JSC Halyk and Global Payments
The main advantage of trading using opposite JSC Halyk and Global Payments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JSC Halyk position performs unexpectedly, Global Payments 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 Global Payments will offset losses from the drop in Global Payments' long position.| JSC Halyk vs. Australian Agricultural | JSC Halyk vs. SERI INDUSTRIAL EO | JSC Halyk vs. GALENA MINING LTD | JSC Halyk vs. Titan Machinery |
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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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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