Correlation Between Halyk Bank and 88 Energy
Can any of the company-specific risk be diversified away by investing in both Halyk Bank and 88 Energy 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 88 Energy 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 88 Energy, you can compare the effects of market volatilities on Halyk Bank and 88 Energy 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 88 Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Halyk Bank and 88 Energy.
Diversification Opportunities for Halyk Bank and 88 Energy
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Halyk and 88E is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Halyk Bank of and 88 Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 88 Energy 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 88 Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 88 Energy has no effect on the direction of Halyk Bank i.e., Halyk Bank and 88 Energy go up and down completely randomly.
Pair Corralation between Halyk Bank and 88 Energy
Assuming the 90 days trading horizon Halyk Bank of is expected to generate 0.25 times more return on investment than 88 Energy. However, Halyk Bank of is 3.96 times less risky than 88 Energy. It trades about 0.13 of its potential returns per unit of risk. 88 Energy is currently generating about -0.04 per unit of risk. If you would invest 804.00 in Halyk Bank of on August 30, 2024 and sell it today you would earn a total of 1,100 from holding Halyk Bank of or generate 136.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Halyk Bank of vs. 88 Energy
Performance |
| Timeline |
| Halyk Bank |
| 88 Energy |
Halyk Bank and 88 Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Halyk Bank and 88 Energy
The main advantage of trading using opposite Halyk Bank and 88 Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Halyk Bank position performs unexpectedly, 88 Energy 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 88 Energy will offset losses from the drop in 88 Energy's long position.| Halyk Bank vs. Take Two Interactive Software | Halyk Bank vs. BW Offshore | Halyk Bank vs. CVS Health Corp | Halyk Bank vs. Oakley Capital Investments |
| 88 Energy vs. Amedeo Air Four | 88 Energy vs. Ryanair Holdings plc | 88 Energy vs. Worldwide Healthcare Trust | 88 Energy vs. PureTech Health 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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