Correlation Between JSC Halyk and RELX PLC
Can any of the company-specific risk be diversified away by investing in both JSC Halyk and RELX PLC 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 RELX PLC 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 RELX PLC, you can compare the effects of market volatilities on JSC Halyk and RELX PLC 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 RELX PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of JSC Halyk and RELX PLC.
Diversification Opportunities for JSC Halyk and RELX PLC
Very weak diversification
The 3 months correlation between JSC and RELX is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding JSC Halyk bank and RELX PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RELX PLC 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 RELX PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RELX PLC has no effect on the direction of JSC Halyk i.e., JSC Halyk and RELX PLC go up and down completely randomly.
Pair Corralation between JSC Halyk and RELX PLC
Assuming the 90 days trading horizon JSC Halyk bank is expected to under-perform the RELX PLC. In addition to that, JSC Halyk is 2.32 times more volatile than RELX PLC. It trades about -0.04 of its total potential returns per unit of risk. RELX PLC is currently generating about 0.34 per unit of volatility. If you would invest 4,418 in RELX PLC on November 3, 2024 and sell it today you would earn a total of 382.00 from holding RELX PLC or generate 8.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
JSC Halyk bank vs. RELX PLC
Performance |
| Timeline |
| JSC Halyk bank |
| RELX PLC |
JSC Halyk and RELX PLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JSC Halyk and RELX PLC
The main advantage of trading using opposite JSC Halyk and RELX PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JSC Halyk position performs unexpectedly, RELX PLC 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 RELX PLC will offset losses from the drop in RELX PLC's long position.| JSC Halyk vs. TRADEGATE | JSC Halyk vs. TRADELINK ELECTRON | JSC Halyk vs. Tradeweb Markets | JSC Halyk vs. FAST RETAIL ADR |
| RELX PLC vs. TOMBADOR IRON LTD | RELX PLC vs. KOBE STEEL LTD | RELX PLC vs. CHEMICAL INDUSTRIES | RELX PLC vs. BlueScope Steel Limited |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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