Correlation Between JSC Halyk and ASURE SOFTWARE
Can any of the company-specific risk be diversified away by investing in both JSC Halyk and ASURE SOFTWARE 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 ASURE SOFTWARE 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 ASURE SOFTWARE, you can compare the effects of market volatilities on JSC Halyk and ASURE SOFTWARE 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 ASURE SOFTWARE. Check out your portfolio center. Please also check ongoing floating volatility patterns of JSC Halyk and ASURE SOFTWARE.
Diversification Opportunities for JSC Halyk and ASURE SOFTWARE
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between JSC and ASURE is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding JSC Halyk bank and ASURE SOFTWARE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASURE SOFTWARE 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 ASURE SOFTWARE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ASURE SOFTWARE has no effect on the direction of JSC Halyk i.e., JSC Halyk and ASURE SOFTWARE go up and down completely randomly.
Pair Corralation between JSC Halyk and ASURE SOFTWARE
Assuming the 90 days trading horizon JSC Halyk bank is expected to generate 1.51 times more return on investment than ASURE SOFTWARE. However, JSC Halyk is 1.51 times more volatile than ASURE SOFTWARE. It trades about 0.01 of its potential returns per unit of risk. ASURE SOFTWARE is currently generating about -0.01 per unit of risk. If you would invest 1,820 in JSC Halyk bank on September 12, 2024 and sell it today you would lose (20.00) from holding JSC Halyk bank or give up 1.1% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
JSC Halyk bank vs. ASURE SOFTWARE
Performance |
| Timeline |
| JSC Halyk bank |
| ASURE SOFTWARE |
JSC Halyk and ASURE SOFTWARE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JSC Halyk and ASURE SOFTWARE
The main advantage of trading using opposite JSC Halyk and ASURE SOFTWARE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JSC Halyk position performs unexpectedly, ASURE SOFTWARE 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 ASURE SOFTWARE will offset losses from the drop in ASURE SOFTWARE's long position.| JSC Halyk vs. China Merchants Bank | JSC Halyk vs. HDFC Bank Limited | JSC Halyk vs. ICICI Bank Limited | JSC Halyk vs. PT Bank Central |
| ASURE SOFTWARE vs. Iridium Communications | ASURE SOFTWARE vs. AWILCO DRILLING PLC | ASURE SOFTWARE vs. Entravision Communications | ASURE SOFTWARE vs. PRECISION DRILLING P |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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