Correlation Between Halyk Bank and Falcon Oil
Can any of the company-specific risk be diversified away by investing in both Halyk Bank and Falcon Oil 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 Falcon Oil 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 Falcon Oil Gas, you can compare the effects of market volatilities on Halyk Bank and Falcon Oil 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 Falcon Oil. Check out your portfolio center. Please also check ongoing floating volatility patterns of Halyk Bank and Falcon Oil.
Diversification Opportunities for Halyk Bank and Falcon Oil
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Halyk and Falcon is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Halyk Bank of and Falcon Oil Gas in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Falcon Oil Gas 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 Falcon Oil. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Falcon Oil Gas has no effect on the direction of Halyk Bank i.e., Halyk Bank and Falcon Oil go up and down completely randomly.
Pair Corralation between Halyk Bank and Falcon Oil
Assuming the 90 days trading horizon Halyk Bank of is expected to generate 0.68 times more return on investment than Falcon Oil. However, Halyk Bank of is 1.46 times less risky than Falcon Oil. It trades about 0.29 of its potential returns per unit of risk. Falcon Oil Gas is currently generating about -0.27 per unit of risk. If you would invest 1,771 in Halyk Bank of on August 24, 2024 and sell it today you would earn a total of 175.00 from holding Halyk Bank of or generate 9.88% 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. Falcon Oil Gas
Performance |
| Timeline |
| Halyk Bank |
| Falcon Oil Gas |
Halyk Bank and Falcon Oil Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Halyk Bank and Falcon Oil
The main advantage of trading using opposite Halyk Bank and Falcon Oil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Halyk Bank position performs unexpectedly, Falcon Oil 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 Falcon Oil will offset losses from the drop in Falcon Oil's long position.| Halyk Bank vs. TechnipFMC PLC | Halyk Bank vs. Celebrus Technologies plc | Halyk Bank vs. Darden Restaurants | Halyk Bank vs. Microchip Technology |
| Falcon Oil vs. JD Sports Fashion | Falcon Oil vs. Datagroup SE | Falcon Oil vs. Flow Traders NV | Falcon Oil vs. Discover Financial Services |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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