Correlation Between JSC Halyk and Lion One
Can any of the company-specific risk be diversified away by investing in both JSC Halyk and Lion One 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 Lion One 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 Lion One Metals, you can compare the effects of market volatilities on JSC Halyk and Lion One 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 Lion One. Check out your portfolio center. Please also check ongoing floating volatility patterns of JSC Halyk and Lion One.
Diversification Opportunities for JSC Halyk and Lion One
Pay attention - limited upside
The 3 months correlation between JSC and Lion is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding JSC Halyk bank and Lion One Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lion One Metals 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 Lion One. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lion One Metals has no effect on the direction of JSC Halyk i.e., JSC Halyk and Lion One go up and down completely randomly.
Pair Corralation between JSC Halyk and Lion One
Assuming the 90 days trading horizon JSC Halyk bank is expected to generate 0.52 times more return on investment than Lion One. However, JSC Halyk bank is 1.94 times less risky than Lion One. It trades about 0.28 of its potential returns per unit of risk. Lion One Metals is currently generating about 0.13 per unit of risk. If you would invest 1,696 in JSC Halyk bank on October 7, 2024 and sell it today you would earn a total of 294.00 from holding JSC Halyk bank or generate 17.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
JSC Halyk bank vs. Lion One Metals
Performance |
| Timeline |
| JSC Halyk bank |
| Lion One Metals |
JSC Halyk and Lion One Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JSC Halyk and Lion One
The main advantage of trading using opposite JSC Halyk and Lion One positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JSC Halyk position performs unexpectedly, Lion One 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 Lion One will offset losses from the drop in Lion One's long position.| JSC Halyk vs. HDFC Bank Limited | JSC Halyk vs. PT Bank Central | JSC Halyk vs. PT Bank Rakyat | JSC Halyk vs. Superior Plus Corp |
| Lion One vs. Wheaton Precious Metals | Lion One vs. Superior Plus Corp | Lion One vs. NMI Holdings | Lion One vs. SIVERS SEMICONDUCTORS AB |
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 Valuation module to check real value of public entities based on technical and fundamental data.
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