Correlation Between JSC Halyk and S A P
Can any of the company-specific risk be diversified away by investing in both JSC Halyk and S A P 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 S A P 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 SAP SE, you can compare the effects of market volatilities on JSC Halyk and S A P 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 S A P. Check out your portfolio center. Please also check ongoing floating volatility patterns of JSC Halyk and S A P.
Diversification Opportunities for JSC Halyk and S A P
Very poor diversification
The 3 months correlation between JSC and SAP is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding JSC Halyk bank and SAP SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SAP SE 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 S A P. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SAP SE has no effect on the direction of JSC Halyk i.e., JSC Halyk and S A P go up and down completely randomly.
Pair Corralation between JSC Halyk and S A P
Assuming the 90 days trading horizon JSC Halyk is expected to generate 2.18 times less return on investment than S A P. In addition to that, JSC Halyk is 3.51 times more volatile than SAP SE. It trades about 0.02 of its total potential returns per unit of risk. SAP SE is currently generating about 0.16 per unit of volatility. If you would invest 21,595 in SAP SE on September 2, 2024 and sell it today you would earn a total of 880.00 from holding SAP SE or generate 4.08% 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. SAP SE
Performance |
| Timeline |
| JSC Halyk bank |
| SAP SE |
JSC Halyk and S A P Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JSC Halyk and S A P
The main advantage of trading using opposite JSC Halyk and S A P positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JSC Halyk position performs unexpectedly, S A P 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 S A P will offset losses from the drop in S A P's long position.| JSC Halyk vs. IDP EDUCATION LTD | JSC Halyk vs. TROPHY GAMES DEV | JSC Halyk vs. CHINA EDUCATION GROUP | JSC Halyk vs. Adtalem Global Education |
| S A P vs. Gaztransport Technigaz SA | S A P vs. UNITED RENTALS | S A P vs. USWE SPORTS AB | S A P vs. Sporttotal AG |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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