Correlation Between JSC Halyk and RTL Group
Can any of the company-specific risk be diversified away by investing in both JSC Halyk and RTL Group 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 RTL Group 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 RTL Group SA, you can compare the effects of market volatilities on JSC Halyk and RTL Group 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 RTL Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of JSC Halyk and RTL Group.
Diversification Opportunities for JSC Halyk and RTL Group
Pay attention - limited upside
The 3 months correlation between JSC and RTL is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding JSC Halyk bank and RTL Group SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RTL Group 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 RTL Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RTL Group SA has no effect on the direction of JSC Halyk i.e., JSC Halyk and RTL Group go up and down completely randomly.
Pair Corralation between JSC Halyk and RTL Group
Assuming the 90 days trading horizon JSC Halyk bank is expected to generate 1.29 times more return on investment than RTL Group. However, JSC Halyk is 1.29 times more volatile than RTL Group SA. It trades about 0.12 of its potential returns per unit of risk. RTL Group SA is currently generating about -0.27 per unit of risk. If you would invest 1,600 in JSC Halyk bank on September 3, 2024 and sell it today you would earn a total of 140.00 from holding JSC Halyk bank or generate 8.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
JSC Halyk bank vs. RTL Group SA
Performance |
| Timeline |
| JSC Halyk bank |
| RTL Group SA |
JSC Halyk and RTL Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JSC Halyk and RTL Group
The main advantage of trading using opposite JSC Halyk and RTL Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JSC Halyk position performs unexpectedly, RTL Group 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 RTL Group will offset losses from the drop in RTL Group's long position.| JSC Halyk vs. Alaska Air Group | JSC Halyk vs. ALTAIR RES INC | JSC Halyk vs. NORWEGIAN AIR SHUT | JSC Halyk vs. Enter Air SA |
| RTL Group vs. Computer And Technologies | RTL Group vs. JSC Halyk bank | RTL Group vs. Micron Technology | RTL Group vs. PKSHA TECHNOLOGY INC |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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