Correlation Between JSC Halyk and IMPERIAL TOBACCO
Can any of the company-specific risk be diversified away by investing in both JSC Halyk and IMPERIAL TOBACCO 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 IMPERIAL TOBACCO 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 IMPERIAL TOBACCO , you can compare the effects of market volatilities on JSC Halyk and IMPERIAL TOBACCO 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 IMPERIAL TOBACCO. Check out your portfolio center. Please also check ongoing floating volatility patterns of JSC Halyk and IMPERIAL TOBACCO.
Diversification Opportunities for JSC Halyk and IMPERIAL TOBACCO
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between JSC and IMPERIAL is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding JSC Halyk bank and IMPERIAL TOBACCO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IMPERIAL TOBACCO 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 IMPERIAL TOBACCO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IMPERIAL TOBACCO has no effect on the direction of JSC Halyk i.e., JSC Halyk and IMPERIAL TOBACCO go up and down completely randomly.
Pair Corralation between JSC Halyk and IMPERIAL TOBACCO
Assuming the 90 days trading horizon JSC Halyk bank is expected to generate 3.19 times more return on investment than IMPERIAL TOBACCO. However, JSC Halyk is 3.19 times more volatile than IMPERIAL TOBACCO . It trades about 0.1 of its potential returns per unit of risk. IMPERIAL TOBACCO is currently generating about 0.23 per unit of risk. If you would invest 1,490 in JSC Halyk bank on September 12, 2024 and sell it today you would earn a total of 310.00 from holding JSC Halyk bank or generate 20.81% 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. IMPERIAL TOBACCO
Performance |
| Timeline |
| JSC Halyk bank |
| IMPERIAL TOBACCO |
JSC Halyk and IMPERIAL TOBACCO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JSC Halyk and IMPERIAL TOBACCO
The main advantage of trading using opposite JSC Halyk and IMPERIAL TOBACCO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JSC Halyk position performs unexpectedly, IMPERIAL TOBACCO 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 IMPERIAL TOBACCO will offset losses from the drop in IMPERIAL TOBACCO's long position.| JSC Halyk vs. China Merchants Bank | JSC Halyk vs. HDFC Bank Limited | JSC Halyk vs. ICICI Bank Limited | JSC Halyk vs. PT Bank Central |
| IMPERIAL TOBACCO vs. SLR Investment Corp | IMPERIAL TOBACCO vs. CyberArk Software | IMPERIAL TOBACCO vs. PennantPark Investment | IMPERIAL TOBACCO vs. ECHO INVESTMENT ZY |
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.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |