Correlation Between Halyk Bank and Amaroq Minerals
Can any of the company-specific risk be diversified away by investing in both Halyk Bank and Amaroq Minerals 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 Halyk Bank and Amaroq Minerals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Halyk Bank of and Amaroq Minerals, you can compare the effects of market volatilities on Halyk Bank and Amaroq Minerals 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 Halyk Bank with a short position of Amaroq Minerals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Halyk Bank and Amaroq Minerals.
Diversification Opportunities for Halyk Bank and Amaroq Minerals
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Halyk and Amaroq is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Halyk Bank of and Amaroq Minerals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amaroq Minerals and Halyk Bank 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 Halyk Bank of are associated (or correlated) with Amaroq Minerals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amaroq Minerals has no effect on the direction of Halyk Bank i.e., Halyk Bank and Amaroq Minerals go up and down completely randomly.
Pair Corralation between Halyk Bank and Amaroq Minerals
Assuming the 90 days trading horizon Halyk Bank of is expected to generate 0.5 times more return on investment than Amaroq Minerals. However, Halyk Bank of is 1.98 times less risky than Amaroq Minerals. It trades about 0.21 of its potential returns per unit of risk. Amaroq Minerals is currently generating about 0.09 per unit of risk. If you would invest 1,852 in Halyk Bank of on October 21, 2024 and sell it today you would earn a total of 124.00 from holding Halyk Bank of or generate 6.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.0% |
| Values | Daily Returns |
Halyk Bank of vs. Amaroq Minerals
Performance |
| Timeline |
| Halyk Bank |
| Amaroq Minerals |
Halyk Bank and Amaroq Minerals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Halyk Bank and Amaroq Minerals
The main advantage of trading using opposite Halyk Bank and Amaroq Minerals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Halyk Bank position performs unexpectedly, Amaroq Minerals 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 Amaroq Minerals will offset losses from the drop in Amaroq Minerals' long position.The idea behind Halyk Bank of and Amaroq Minerals pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Amaroq Minerals vs. Empire Metals Limited | Amaroq Minerals vs. Livermore Investments Group | Amaroq Minerals vs. AMG Advanced Metallurgical | Amaroq Minerals vs. BlackRock Frontiers Investment |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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