Correlation Between JSC Halyk and BANDAI NAMCO
Can any of the company-specific risk be diversified away by investing in both JSC Halyk and BANDAI NAMCO 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 BANDAI NAMCO 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 BANDAI NAMCO Holdings, you can compare the effects of market volatilities on JSC Halyk and BANDAI NAMCO 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 BANDAI NAMCO. Check out your portfolio center. Please also check ongoing floating volatility patterns of JSC Halyk and BANDAI NAMCO.
Diversification Opportunities for JSC Halyk and BANDAI NAMCO
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between JSC and BANDAI is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding JSC Halyk bank and BANDAI NAMCO Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BANDAI NAMCO Holdings 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 BANDAI NAMCO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BANDAI NAMCO Holdings has no effect on the direction of JSC Halyk i.e., JSC Halyk and BANDAI NAMCO go up and down completely randomly.
Pair Corralation between JSC Halyk and BANDAI NAMCO
Assuming the 90 days trading horizon JSC Halyk bank is expected to generate 2.22 times more return on investment than BANDAI NAMCO. However, JSC Halyk is 2.22 times more volatile than BANDAI NAMCO Holdings. It trades about 0.07 of its potential returns per unit of risk. BANDAI NAMCO Holdings is currently generating about -0.32 per unit of risk. If you would invest 1,900 in JSC Halyk bank on October 25, 2024 and sell it today you would earn a total of 50.00 from holding JSC Halyk bank or generate 2.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
JSC Halyk bank vs. BANDAI NAMCO Holdings
Performance |
| Timeline |
| JSC Halyk bank |
| BANDAI NAMCO Holdings |
JSC Halyk and BANDAI NAMCO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JSC Halyk and BANDAI NAMCO
The main advantage of trading using opposite JSC Halyk and BANDAI NAMCO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JSC Halyk position performs unexpectedly, BANDAI NAMCO 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 BANDAI NAMCO will offset losses from the drop in BANDAI NAMCO's long position.| JSC Halyk vs. Entravision Communications | JSC Halyk vs. BII Railway Transportation | JSC Halyk vs. Yuexiu Transport Infrastructure | JSC Halyk vs. Chengdu PUTIAN Telecommunications |
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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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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