Correlation Between JSC Halyk and Whirlpool
Can any of the company-specific risk be diversified away by investing in both JSC Halyk and Whirlpool 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 Whirlpool 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 Whirlpool, you can compare the effects of market volatilities on JSC Halyk and Whirlpool 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 Whirlpool. Check out your portfolio center. Please also check ongoing floating volatility patterns of JSC Halyk and Whirlpool.
Diversification Opportunities for JSC Halyk and Whirlpool
Very poor diversification
The 3 months correlation between JSC and Whirlpool is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding JSC Halyk bank and Whirlpool in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Whirlpool 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 Whirlpool. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Whirlpool has no effect on the direction of JSC Halyk i.e., JSC Halyk and Whirlpool go up and down completely randomly.
Pair Corralation between JSC Halyk and Whirlpool
Assuming the 90 days trading horizon JSC Halyk is expected to generate 1.47 times less return on investment than Whirlpool. In addition to that, JSC Halyk is 1.71 times more volatile than Whirlpool. It trades about 0.14 of its total potential returns per unit of risk. Whirlpool is currently generating about 0.34 per unit of volatility. If you would invest 11,080 in Whirlpool on October 20, 2024 and sell it today you would earn a total of 1,385 from holding Whirlpool or generate 12.5% 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. Whirlpool
Performance |
| Timeline |
| JSC Halyk bank |
| Whirlpool |
JSC Halyk and Whirlpool Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JSC Halyk and Whirlpool
The main advantage of trading using opposite JSC Halyk and Whirlpool positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JSC Halyk position performs unexpectedly, Whirlpool 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 Whirlpool will offset losses from the drop in Whirlpool's long position.| JSC Halyk vs. BW OFFSHORE LTD | JSC Halyk vs. Solstad Offshore ASA | JSC Halyk vs. Nok Airlines PCL | JSC Halyk vs. SINGAPORE AIRLINES |
| Whirlpool vs. Stag Industrial | Whirlpool vs. FIREWEED METALS P | Whirlpool vs. UNIQA INSURANCE GR | Whirlpool vs. Ultra Clean Holdings |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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