Correlation Between JSC Halyk and Methode Electronics
Can any of the company-specific risk be diversified away by investing in both JSC Halyk and Methode Electronics 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 Methode Electronics 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 Methode Electronics, you can compare the effects of market volatilities on JSC Halyk and Methode Electronics 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 Methode Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of JSC Halyk and Methode Electronics.
Diversification Opportunities for JSC Halyk and Methode Electronics
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between JSC and Methode is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding JSC Halyk bank and Methode Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Methode Electronics 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 Methode Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Methode Electronics has no effect on the direction of JSC Halyk i.e., JSC Halyk and Methode Electronics go up and down completely randomly.
Pair Corralation between JSC Halyk and Methode Electronics
Assuming the 90 days trading horizon JSC Halyk bank is expected to generate 1.13 times more return on investment than Methode Electronics. However, JSC Halyk is 1.13 times more volatile than Methode Electronics. It trades about 0.18 of its potential returns per unit of risk. Methode Electronics is currently generating about -0.09 per unit of risk. If you would invest 1,600 in JSC Halyk bank on August 25, 2024 and sell it today you would earn a total of 250.00 from holding JSC Halyk bank or generate 15.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JSC Halyk bank vs. Methode Electronics
Performance |
| Timeline |
| JSC Halyk bank |
| Methode Electronics |
JSC Halyk and Methode Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JSC Halyk and Methode Electronics
The main advantage of trading using opposite JSC Halyk and Methode Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JSC Halyk position performs unexpectedly, Methode Electronics 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 Methode Electronics will offset losses from the drop in Methode Electronics' long position.| JSC Halyk vs. HDFC Bank Limited | JSC Halyk vs. PT Bank Central | JSC Halyk vs. DBS Group Holdings | JSC Halyk vs. State Bank of |
| Methode Electronics vs. Amphenol | Methode Electronics vs. Hon Hai Precision | Methode Electronics vs. Samsung SDI Co | Methode Electronics vs. Corning Incorporated |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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