Correlation Between HAL Trust and VEON
Can any of the company-specific risk be diversified away by investing in both HAL Trust and VEON 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 HAL Trust and VEON into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HAL Trust and VEON, you can compare the effects of market volatilities on HAL Trust and VEON 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 HAL Trust with a short position of VEON. Check out your portfolio center. Please also check ongoing floating volatility patterns of HAL Trust and VEON.
Diversification Opportunities for HAL Trust and VEON
Pay attention - limited upside
The 3 months correlation between HAL and VEON is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding HAL Trust and VEON in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VEON and HAL Trust 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 HAL Trust are associated (or correlated) with VEON. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VEON has no effect on the direction of HAL Trust i.e., HAL Trust and VEON go up and down completely randomly.
Pair Corralation between HAL Trust and VEON
Assuming the 90 days trading horizon HAL Trust is expected to generate 4.93 times less return on investment than VEON. But when comparing it to its historical volatility, HAL Trust is 5.31 times less risky than VEON. It trades about 0.07 of its potential returns per unit of risk. VEON is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 115.00 in VEON on August 30, 2024 and sell it today you would earn a total of 4.00 from holding VEON or generate 3.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 86.96% |
| Values | Daily Returns |
HAL Trust vs. VEON
Performance |
| Timeline |
| HAL Trust |
| VEON |
HAL Trust and VEON Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HAL Trust and VEON
The main advantage of trading using opposite HAL Trust and VEON positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HAL Trust position performs unexpectedly, VEON 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 VEON will offset losses from the drop in VEON's long position.| HAL Trust vs. Ackermans Van Haaren | HAL Trust vs. Koninklijke Vopak NV | HAL Trust vs. Groep Brussel Lambert | HAL Trust vs. Sofina Socit Anonyme |
| VEON vs. Van Lanschot NV | VEON vs. Amsterdam Commodities NV | VEON vs. ForFarmers NV | VEON vs. Wereldhave NV |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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