Correlation Between Host Hotels and JSC Halyk
Can any of the company-specific risk be diversified away by investing in both Host Hotels and JSC Halyk 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 Host Hotels and JSC Halyk into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Host Hotels Resorts and JSC Halyk bank, you can compare the effects of market volatilities on Host Hotels and JSC Halyk 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 Host Hotels with a short position of JSC Halyk. Check out your portfolio center. Please also check ongoing floating volatility patterns of Host Hotels and JSC Halyk.
Diversification Opportunities for Host Hotels and JSC Halyk
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Host and JSC is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Host Hotels Resorts and JSC Halyk bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JSC Halyk bank and Host Hotels 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 Host Hotels Resorts are associated (or correlated) with JSC Halyk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JSC Halyk bank has no effect on the direction of Host Hotels i.e., Host Hotels and JSC Halyk go up and down completely randomly.
Pair Corralation between Host Hotels and JSC Halyk
Assuming the 90 days horizon Host Hotels is expected to generate 4.71 times less return on investment than JSC Halyk. But when comparing it to its historical volatility, Host Hotels Resorts is 2.29 times less risky than JSC Halyk. It trades about 0.03 of its potential returns per unit of risk. JSC Halyk bank is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 927.00 in JSC Halyk bank on August 29, 2024 and sell it today you would earn a total of 873.00 from holding JSC Halyk bank or generate 94.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Host Hotels Resorts vs. JSC Halyk bank
Performance |
| Timeline |
| Host Hotels Resorts |
| JSC Halyk bank |
Host Hotels and JSC Halyk Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Host Hotels and JSC Halyk
The main advantage of trading using opposite Host Hotels and JSC Halyk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Host Hotels position performs unexpectedly, JSC Halyk 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 JSC Halyk will offset losses from the drop in JSC Halyk's long position.| Host Hotels vs. VIAPLAY GROUP AB | Host Hotels vs. CVW CLEANTECH INC | Host Hotels vs. COLUMBIA SPORTSWEAR | Host Hotels vs. ANTA SPORTS PRODUCT |
| JSC Halyk vs. Lifeway Foods | JSC Halyk vs. SMA Solar Technology | JSC Halyk vs. Food Life Companies | JSC Halyk vs. X FAB Silicon Foundries |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |