Correlation Between JSC Halyk and Kering SA
Can any of the company-specific risk be diversified away by investing in both JSC Halyk and Kering SA 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 Kering SA 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 Kering SA, you can compare the effects of market volatilities on JSC Halyk and Kering SA 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 Kering SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of JSC Halyk and Kering SA.
Diversification Opportunities for JSC Halyk and Kering SA
Very good diversification
The 3 months correlation between JSC and Kering is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding JSC Halyk bank and Kering SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kering SA 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 Kering SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kering SA has no effect on the direction of JSC Halyk i.e., JSC Halyk and Kering SA go up and down completely randomly.
Pair Corralation between JSC Halyk and Kering SA
Assuming the 90 days trading horizon JSC Halyk bank is expected to under-perform the Kering SA. In addition to that, JSC Halyk is 1.48 times more volatile than Kering SA. It trades about -0.02 of its total potential returns per unit of risk. Kering SA is currently generating about 0.25 per unit of volatility. If you would invest 20,995 in Kering SA on September 14, 2024 and sell it today you would earn a total of 2,995 from holding Kering SA or generate 14.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
JSC Halyk bank vs. Kering SA
Performance |
| Timeline |
| JSC Halyk bank |
| Kering SA |
JSC Halyk and Kering SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JSC Halyk and Kering SA
The main advantage of trading using opposite JSC Halyk and Kering SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JSC Halyk position performs unexpectedly, Kering SA 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 Kering SA will offset losses from the drop in Kering SA's long position.| JSC Halyk vs. AGNC INVESTMENT | JSC Halyk vs. HK Electric Investments | JSC Halyk vs. Gamma Communications plc | JSC Halyk vs. Entravision Communications |
| Kering SA vs. BOSTON BEER A | Kering SA vs. Fevertree Drinks PLC | Kering SA vs. QBE Insurance Group | Kering SA 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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