Correlation Between RCS MediaGroup and JSC Halyk
Can any of the company-specific risk be diversified away by investing in both RCS MediaGroup 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 RCS MediaGroup and JSC Halyk into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between RCS MediaGroup SpA and JSC Halyk bank, you can compare the effects of market volatilities on RCS MediaGroup 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 RCS MediaGroup with a short position of JSC Halyk. Check out your portfolio center. Please also check ongoing floating volatility patterns of RCS MediaGroup and JSC Halyk.
Diversification Opportunities for RCS MediaGroup and JSC Halyk
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between RCS and JSC is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding RCS MediaGroup SpA 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 RCS MediaGroup 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 RCS MediaGroup SpA 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 RCS MediaGroup i.e., RCS MediaGroup and JSC Halyk go up and down completely randomly.
Pair Corralation between RCS MediaGroup and JSC Halyk
Assuming the 90 days trading horizon RCS MediaGroup is expected to generate 3.05 times less return on investment than JSC Halyk. But when comparing it to its historical volatility, RCS MediaGroup SpA is 2.09 times less risky than JSC Halyk. It trades about 0.05 of its potential returns per unit of risk. JSC Halyk bank is currently generating about 0.07 of returns per unit of risk over similar time horizon. 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 | Significant |
| Accuracy | 99.8% |
| Values | Daily Returns |
RCS MediaGroup SpA vs. JSC Halyk bank
Performance |
| Timeline |
| RCS MediaGroup SpA |
| JSC Halyk bank |
RCS MediaGroup and JSC Halyk Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with RCS MediaGroup and JSC Halyk
The main advantage of trading using opposite RCS MediaGroup and JSC Halyk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RCS MediaGroup 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.| RCS MediaGroup vs. PLAYWAY SA ZY 10 | RCS MediaGroup vs. Playtech plc | RCS MediaGroup vs. ANTA SPORTS PRODUCT | RCS MediaGroup vs. Aristocrat Leisure Limited |
| JSC Halyk vs. RCS MediaGroup SpA | JSC Halyk vs. Nexstar Media Group | JSC Halyk vs. DFS Furniture PLC | JSC Halyk vs. KENEDIX OFFICE INV |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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