Correlation Between Halyk Bank and Antofagasta PLC
Can any of the company-specific risk be diversified away by investing in both Halyk Bank and Antofagasta PLC 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 Antofagasta PLC 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 Antofagasta PLC, you can compare the effects of market volatilities on Halyk Bank and Antofagasta PLC 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 Antofagasta PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Halyk Bank and Antofagasta PLC.
Diversification Opportunities for Halyk Bank and Antofagasta PLC
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Halyk and Antofagasta is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Halyk Bank of and Antofagasta PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Antofagasta PLC 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 Antofagasta PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Antofagasta PLC has no effect on the direction of Halyk Bank i.e., Halyk Bank and Antofagasta PLC go up and down completely randomly.
Pair Corralation between Halyk Bank and Antofagasta PLC
Assuming the 90 days trading horizon Halyk Bank of is expected to under-perform the Antofagasta PLC. In addition to that, Halyk Bank is 1.04 times more volatile than Antofagasta PLC. It trades about -0.02 of its total potential returns per unit of risk. Antofagasta PLC is currently generating about 0.21 per unit of volatility. If you would invest 161,400 in Antofagasta PLC on November 2, 2024 and sell it today you would earn a total of 13,100 from holding Antofagasta PLC or generate 8.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Halyk Bank of vs. Antofagasta PLC
Performance |
| Timeline |
| Halyk Bank |
| Antofagasta PLC |
Halyk Bank and Antofagasta PLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Halyk Bank and Antofagasta PLC
The main advantage of trading using opposite Halyk Bank and Antofagasta PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Halyk Bank position performs unexpectedly, Antofagasta PLC 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 Antofagasta PLC will offset losses from the drop in Antofagasta PLC's long position.The idea behind Halyk Bank of and Antofagasta PLC 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.| Antofagasta PLC vs. Vietnam Enterprise Investments | Antofagasta PLC vs. Edinburgh Investment Trust | Antofagasta PLC vs. Bankers Investment Trust | Antofagasta PLC vs. Fonix Mobile plc |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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