Correlation Between JSC Halyk and SERI INDUSTRIAL
Can any of the company-specific risk be diversified away by investing in both JSC Halyk and SERI INDUSTRIAL 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 SERI INDUSTRIAL 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 SERI INDUSTRIAL EO, you can compare the effects of market volatilities on JSC Halyk and SERI INDUSTRIAL 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 SERI INDUSTRIAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of JSC Halyk and SERI INDUSTRIAL.
Diversification Opportunities for JSC Halyk and SERI INDUSTRIAL
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between JSC and SERI is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding JSC Halyk bank and SERI INDUSTRIAL EO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SERI INDUSTRIAL EO 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 SERI INDUSTRIAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SERI INDUSTRIAL EO has no effect on the direction of JSC Halyk i.e., JSC Halyk and SERI INDUSTRIAL go up and down completely randomly.
Pair Corralation between JSC Halyk and SERI INDUSTRIAL
Assuming the 90 days trading horizon JSC Halyk bank is expected to generate 0.89 times more return on investment than SERI INDUSTRIAL. However, JSC Halyk bank is 1.12 times less risky than SERI INDUSTRIAL. It trades about 0.06 of its potential returns per unit of risk. SERI INDUSTRIAL EO is currently generating about 0.0 per unit of risk. If you would invest 1,051 in JSC Halyk bank on August 31, 2024 and sell it today you would earn a total of 749.00 from holding JSC Halyk bank or generate 71.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.74% |
| Values | Daily Returns |
JSC Halyk bank vs. SERI INDUSTRIAL EO
Performance |
| Timeline |
| JSC Halyk bank |
| SERI INDUSTRIAL EO |
JSC Halyk and SERI INDUSTRIAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JSC Halyk and SERI INDUSTRIAL
The main advantage of trading using opposite JSC Halyk and SERI INDUSTRIAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JSC Halyk position performs unexpectedly, SERI INDUSTRIAL 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 SERI INDUSTRIAL will offset losses from the drop in SERI INDUSTRIAL's long position.The idea behind JSC Halyk bank and SERI INDUSTRIAL EO pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| SERI INDUSTRIAL vs. Apple Inc | SERI INDUSTRIAL vs. Apple Inc | SERI INDUSTRIAL vs. Apple Inc | SERI INDUSTRIAL vs. Apple Inc |
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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