Correlation Between JSC Halyk and Penn National
Can any of the company-specific risk be diversified away by investing in both JSC Halyk and Penn National 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 Penn National 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 Penn National Gaming, you can compare the effects of market volatilities on JSC Halyk and Penn National 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 Penn National. Check out your portfolio center. Please also check ongoing floating volatility patterns of JSC Halyk and Penn National.
Diversification Opportunities for JSC Halyk and Penn National
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between JSC and Penn is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding JSC Halyk bank and Penn National Gaming in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Penn National Gaming 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 Penn National. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Penn National Gaming has no effect on the direction of JSC Halyk i.e., JSC Halyk and Penn National go up and down completely randomly.
Pair Corralation between JSC Halyk and Penn National
Assuming the 90 days trading horizon JSC Halyk bank is expected to generate 1.44 times more return on investment than Penn National. However, JSC Halyk is 1.44 times more volatile than Penn National Gaming. It trades about 0.1 of its potential returns per unit of risk. Penn National Gaming is currently generating about 0.12 per unit of risk. If you would invest 1,490 in JSC Halyk bank on September 12, 2024 and sell it today you would earn a total of 310.00 from holding JSC Halyk bank or generate 20.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
JSC Halyk bank vs. Penn National Gaming
Performance |
| Timeline |
| JSC Halyk bank |
| Penn National Gaming |
JSC Halyk and Penn National Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JSC Halyk and Penn National
The main advantage of trading using opposite JSC Halyk and Penn National positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JSC Halyk position performs unexpectedly, Penn National 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 Penn National will offset losses from the drop in Penn National's long position.| JSC Halyk vs. China Merchants Bank | JSC Halyk vs. HDFC Bank Limited | JSC Halyk vs. ICICI Bank Limited | JSC Halyk vs. PT Bank Central |
| Penn National vs. Tradegate AG Wertpapierhandelsbank | Penn National vs. The Hanover Insurance | Penn National vs. FUTURE GAMING GRP | Penn National vs. JSC Halyk bank |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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