Correlation Between JSC Halyk and Resmed
Can any of the company-specific risk be diversified away by investing in both JSC Halyk and Resmed 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 Resmed 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 Resmed Inc DRC, you can compare the effects of market volatilities on JSC Halyk and Resmed 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 Resmed. Check out your portfolio center. Please also check ongoing floating volatility patterns of JSC Halyk and Resmed.
Diversification Opportunities for JSC Halyk and Resmed
Poor diversification
The 3 months correlation between JSC and Resmed is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding JSC Halyk bank and Resmed Inc DRC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Resmed Inc DRC 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 Resmed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Resmed Inc DRC has no effect on the direction of JSC Halyk i.e., JSC Halyk and Resmed go up and down completely randomly.
Pair Corralation between JSC Halyk and Resmed
Assuming the 90 days trading horizon JSC Halyk bank is expected to generate 1.63 times more return on investment than Resmed. However, JSC Halyk is 1.63 times more volatile than Resmed Inc DRC. It trades about 0.07 of its potential returns per unit of risk. Resmed Inc DRC is currently generating about 0.1 per unit of risk. If you would invest 1,019 in JSC Halyk bank on September 14, 2024 and sell it today you would earn a total of 706.00 from holding JSC Halyk bank or generate 69.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JSC Halyk bank vs. Resmed Inc DRC
Performance |
| Timeline |
| JSC Halyk bank |
| Resmed Inc DRC |
JSC Halyk and Resmed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JSC Halyk and Resmed
The main advantage of trading using opposite JSC Halyk and Resmed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JSC Halyk position performs unexpectedly, Resmed 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 Resmed will offset losses from the drop in Resmed'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 |
| Resmed vs. EMBARK EDUCATION LTD | Resmed vs. EEDUCATION ALBERT AB | Resmed vs. JSC Halyk bank | Resmed vs. Regions Financial |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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