Correlation Between JSC Halyk and Packagingof America
Can any of the company-specific risk be diversified away by investing in both JSC Halyk and Packagingof America 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 Packagingof America 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 Packaging of, you can compare the effects of market volatilities on JSC Halyk and Packagingof America 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 Packagingof America. Check out your portfolio center. Please also check ongoing floating volatility patterns of JSC Halyk and Packagingof America.
Diversification Opportunities for JSC Halyk and Packagingof America
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between JSC and Packagingof is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding JSC Halyk bank and Packaging of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Packagingof America 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 Packagingof America. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Packagingof America has no effect on the direction of JSC Halyk i.e., JSC Halyk and Packagingof America go up and down completely randomly.
Pair Corralation between JSC Halyk and Packagingof America
Assuming the 90 days trading horizon JSC Halyk bank is expected to generate 1.16 times more return on investment than Packagingof America. However, JSC Halyk is 1.16 times more volatile than Packaging of. It trades about -0.04 of its potential returns per unit of risk. Packaging of is currently generating about -0.13 per unit of risk. If you would invest 1,900 in JSC Halyk bank on November 3, 2024 and sell it today you would lose (60.00) from holding JSC Halyk bank or give up 3.16% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
JSC Halyk bank vs. Packaging of
Performance |
| Timeline |
| JSC Halyk bank |
| Packagingof America |
JSC Halyk and Packagingof America Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JSC Halyk and Packagingof America
The main advantage of trading using opposite JSC Halyk and Packagingof America positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JSC Halyk position performs unexpectedly, Packagingof America 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 Packagingof America will offset losses from the drop in Packagingof America's long position.| JSC Halyk vs. TRADEGATE | JSC Halyk vs. TRADELINK ELECTRON | JSC Halyk vs. Tradeweb Markets | JSC Halyk vs. FAST RETAIL ADR |
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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 Stocks Directory module to find actively traded stocks across global markets.
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