Correlation Between Halyk Bank and Ceres Power
Can any of the company-specific risk be diversified away by investing in both Halyk Bank and Ceres Power 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 Ceres Power 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 Ceres Power Holdings, you can compare the effects of market volatilities on Halyk Bank and Ceres Power 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 Ceres Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Halyk Bank and Ceres Power.
Diversification Opportunities for Halyk Bank and Ceres Power
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Halyk and Ceres is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Halyk Bank of and Ceres Power Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ceres Power Holdings 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 Ceres Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ceres Power Holdings has no effect on the direction of Halyk Bank i.e., Halyk Bank and Ceres Power go up and down completely randomly.
Pair Corralation between Halyk Bank and Ceres Power
Assuming the 90 days trading horizon Halyk Bank of is expected to generate 0.52 times more return on investment than Ceres Power. However, Halyk Bank of is 1.93 times less risky than Ceres Power. It trades about 0.21 of its potential returns per unit of risk. Ceres Power Holdings is currently generating about -0.39 per unit of risk. If you would invest 1,753 in Halyk Bank of on August 29, 2024 and sell it today you would earn a total of 151.00 from holding Halyk Bank of or generate 8.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Halyk Bank of vs. Ceres Power Holdings
Performance |
| Timeline |
| Halyk Bank |
| Ceres Power Holdings |
Halyk Bank and Ceres Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Halyk Bank and Ceres Power
The main advantage of trading using opposite Halyk Bank and Ceres Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Halyk Bank position performs unexpectedly, Ceres Power 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 Ceres Power will offset losses from the drop in Ceres Power'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 |
| Ceres Power vs. LPKF Laser Electronics | Ceres Power vs. Teradata Corp | Ceres Power vs. Datagroup SE | Ceres Power vs. Elmos Semiconductor SE |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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