Correlation Between JSC Halyk and Perseus Mining
Can any of the company-specific risk be diversified away by investing in both JSC Halyk and Perseus Mining 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 Perseus Mining 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 Perseus Mining Limited, you can compare the effects of market volatilities on JSC Halyk and Perseus Mining 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 Perseus Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of JSC Halyk and Perseus Mining.
Diversification Opportunities for JSC Halyk and Perseus Mining
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between JSC and Perseus is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding JSC Halyk bank and Perseus Mining Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Perseus Mining 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 Perseus Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Perseus Mining has no effect on the direction of JSC Halyk i.e., JSC Halyk and Perseus Mining go up and down completely randomly.
Pair Corralation between JSC Halyk and Perseus Mining
Assuming the 90 days trading horizon JSC Halyk bank is expected to generate 1.77 times more return on investment than Perseus Mining. However, JSC Halyk is 1.77 times more volatile than Perseus Mining Limited. It trades about 0.12 of its potential returns per unit of risk. Perseus Mining Limited is currently generating about -0.08 per unit of risk. If you would invest 1,600 in JSC Halyk bank on September 4, 2024 and sell it today you would earn a total of 140.00 from holding JSC Halyk bank or generate 8.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
JSC Halyk bank vs. Perseus Mining Limited
Performance |
| Timeline |
| JSC Halyk bank |
| Perseus Mining |
JSC Halyk and Perseus Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JSC Halyk and Perseus Mining
The main advantage of trading using opposite JSC Halyk and Perseus Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JSC Halyk position performs unexpectedly, Perseus Mining 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 Perseus Mining will offset losses from the drop in Perseus Mining's long position.| JSC Halyk vs. Australian Agricultural | JSC Halyk vs. SERI INDUSTRIAL EO | JSC Halyk vs. GALENA MINING LTD | JSC Halyk vs. Titan Machinery |
| Perseus Mining vs. ZIJIN MINH UNSPADR20 | Perseus Mining vs. Barrick Gold | Perseus Mining vs. Superior Plus Corp | Perseus Mining vs. NMI Holdings |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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