Correlation Between JSC Halyk and Yamaha
Can any of the company-specific risk be diversified away by investing in both JSC Halyk and Yamaha 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 Yamaha 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 Yamaha Motor Co, you can compare the effects of market volatilities on JSC Halyk and Yamaha 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 Yamaha. Check out your portfolio center. Please also check ongoing floating volatility patterns of JSC Halyk and Yamaha.
Diversification Opportunities for JSC Halyk and Yamaha
Very weak diversification
The 3 months correlation between JSC and Yamaha is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding JSC Halyk bank and Yamaha Motor Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yamaha Motor 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 Yamaha. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yamaha Motor has no effect on the direction of JSC Halyk i.e., JSC Halyk and Yamaha go up and down completely randomly.
Pair Corralation between JSC Halyk and Yamaha
Assuming the 90 days trading horizon JSC Halyk bank is expected to generate 2.41 times more return on investment than Yamaha. However, JSC Halyk is 2.41 times more volatile than Yamaha Motor Co. It trades about 0.13 of its potential returns per unit of risk. Yamaha Motor Co is currently generating about 0.09 per unit of risk. If you would invest 1,630 in JSC Halyk bank on August 28, 2024 and sell it today you would earn a total of 170.00 from holding JSC Halyk bank or generate 10.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
JSC Halyk bank vs. Yamaha Motor Co
Performance |
| Timeline |
| JSC Halyk bank |
| Yamaha Motor |
JSC Halyk and Yamaha Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JSC Halyk and Yamaha
The main advantage of trading using opposite JSC Halyk and Yamaha positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JSC Halyk position performs unexpectedly, Yamaha 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 Yamaha will offset losses from the drop in Yamaha's long position.| JSC Halyk vs. HDFC Bank Limited | JSC Halyk vs. DBS Group Holdings | JSC Halyk vs. State Bank of | JSC Halyk vs. PT Bank Rakyat |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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