Correlation Between JSC Halyk and SENECA FOODS-A
Can any of the company-specific risk be diversified away by investing in both JSC Halyk and SENECA FOODS-A 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 SENECA FOODS-A 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 SENECA FOODS A, you can compare the effects of market volatilities on JSC Halyk and SENECA FOODS-A 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 SENECA FOODS-A. Check out your portfolio center. Please also check ongoing floating volatility patterns of JSC Halyk and SENECA FOODS-A.
Diversification Opportunities for JSC Halyk and SENECA FOODS-A
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between JSC and SENECA is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding JSC Halyk bank and SENECA FOODS A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SENECA FOODS A 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 SENECA FOODS-A. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SENECA FOODS A has no effect on the direction of JSC Halyk i.e., JSC Halyk and SENECA FOODS-A go up and down completely randomly.
Pair Corralation between JSC Halyk and SENECA FOODS-A
Assuming the 90 days trading horizon JSC Halyk bank is expected to generate 1.27 times more return on investment than SENECA FOODS-A. However, JSC Halyk is 1.27 times more volatile than SENECA FOODS A. It trades about 0.07 of its potential returns per unit of risk. SENECA FOODS A is currently generating about 0.03 per unit of risk. If you would invest 723.00 in JSC Halyk bank on October 16, 2024 and sell it today you would earn a total of 1,167 from holding JSC Halyk bank or generate 161.41% 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. SENECA FOODS A
Performance |
| Timeline |
| JSC Halyk bank |
| SENECA FOODS A |
JSC Halyk and SENECA FOODS-A Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JSC Halyk and SENECA FOODS-A
The main advantage of trading using opposite JSC Halyk and SENECA FOODS-A positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JSC Halyk position performs unexpectedly, SENECA FOODS-A 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 SENECA FOODS-A will offset losses from the drop in SENECA FOODS-A's long position.| JSC Halyk vs. Discover Financial Services | JSC Halyk vs. Liberty Broadband | JSC Halyk vs. COPLAND ROAD CAPITAL | JSC Halyk vs. Gaztransport Technigaz SA |
| SENECA FOODS-A vs. JSC Halyk bank | SENECA FOODS-A vs. Casio Computer CoLtd | SENECA FOODS-A vs. CVB Financial Corp | SENECA FOODS-A vs. BANK OF CHINA |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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