Correlation Between Halyk Bank and Catalyst Media
Can any of the company-specific risk be diversified away by investing in both Halyk Bank and Catalyst Media 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 Catalyst Media 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 Catalyst Media Group, you can compare the effects of market volatilities on Halyk Bank and Catalyst Media 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 Catalyst Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Halyk Bank and Catalyst Media.
Diversification Opportunities for Halyk Bank and Catalyst Media
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Halyk and Catalyst is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Halyk Bank of and Catalyst Media Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Catalyst Media Group 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 Catalyst Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Catalyst Media Group has no effect on the direction of Halyk Bank i.e., Halyk Bank and Catalyst Media go up and down completely randomly.
Pair Corralation between Halyk Bank and Catalyst Media
Assuming the 90 days trading horizon Halyk Bank of is expected to generate 0.66 times more return on investment than Catalyst Media. However, Halyk Bank of is 1.51 times less risky than Catalyst Media. It trades about 0.17 of its potential returns per unit of risk. Catalyst Media Group is currently generating about -0.12 per unit of risk. If you would invest 1,754 in Halyk Bank of on August 30, 2024 and sell it today you would earn a total of 118.00 from holding Halyk Bank of or generate 6.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Halyk Bank of vs. Catalyst Media Group
Performance |
| Timeline |
| Halyk Bank |
| Catalyst Media Group |
Halyk Bank and Catalyst Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Halyk Bank and Catalyst Media
The main advantage of trading using opposite Halyk Bank and Catalyst Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Halyk Bank position performs unexpectedly, Catalyst Media 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 Catalyst Media will offset losses from the drop in Catalyst Media's long position.| Halyk Bank vs. Check Point Software | Halyk Bank vs. Dentsply Sirona | Halyk Bank vs. Gaztransport et Technigaz | Halyk Bank vs. Kaufman Et Broad |
| Catalyst Media vs. Hyundai Motor | Catalyst Media vs. Toyota Motor Corp | Catalyst Media vs. SoftBank Group Corp | Catalyst Media vs. Halyk Bank of |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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