Correlation Between Halyk Bank and Guaranty Trust
Can any of the company-specific risk be diversified away by investing in both Halyk Bank and Guaranty Trust 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 Guaranty Trust 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 Guaranty Trust Holding, you can compare the effects of market volatilities on Halyk Bank and Guaranty Trust 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 Guaranty Trust. Check out your portfolio center. Please also check ongoing floating volatility patterns of Halyk Bank and Guaranty Trust.
Diversification Opportunities for Halyk Bank and Guaranty Trust
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Halyk and Guaranty is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Halyk Bank of and Guaranty Trust Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guaranty Trust Holding 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 Guaranty Trust. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guaranty Trust Holding has no effect on the direction of Halyk Bank i.e., Halyk Bank and Guaranty Trust go up and down completely randomly.
Pair Corralation between Halyk Bank and Guaranty Trust
Assuming the 90 days trading horizon Halyk Bank of is expected to under-perform the Guaranty Trust. But the stock apears to be less risky and, when comparing its historical volatility, Halyk Bank of is 1.79 times less risky than Guaranty Trust. The stock trades about -0.02 of its potential returns per unit of risk. The Guaranty Trust Holding is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 190.00 in Guaranty Trust Holding on November 2, 2024 and sell it today you would earn a total of 18.00 from holding Guaranty Trust Holding or generate 9.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Halyk Bank of vs. Guaranty Trust Holding
Performance |
| Timeline |
| Halyk Bank |
| Guaranty Trust Holding |
Halyk Bank and Guaranty Trust Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Halyk Bank and Guaranty Trust
The main advantage of trading using opposite Halyk Bank and Guaranty Trust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Halyk Bank position performs unexpectedly, Guaranty Trust 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 Guaranty Trust will offset losses from the drop in Guaranty Trust's long position.| Halyk Bank vs. UNIQA Insurance Group | Halyk Bank vs. Central Asia Metals | Halyk Bank vs. Power Metal Resources | Halyk Bank vs. Ashtead Technology Holdings |
| Guaranty Trust vs. JLEN Environmental Assets | Guaranty Trust vs. Aeorema Communications Plc | Guaranty Trust vs. Batm Advanced Communications | Guaranty Trust vs. Veolia Environnement VE |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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