Correlation Between Halyk Bank and InterContinental
Can any of the company-specific risk be diversified away by investing in both Halyk Bank and InterContinental 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 InterContinental 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 InterContinental Hotels Group, you can compare the effects of market volatilities on Halyk Bank and InterContinental 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 InterContinental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Halyk Bank and InterContinental.
Diversification Opportunities for Halyk Bank and InterContinental
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Halyk and InterContinental is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Halyk Bank of and InterContinental Hotels Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on InterContinental Hotels 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 InterContinental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of InterContinental Hotels has no effect on the direction of Halyk Bank i.e., Halyk Bank and InterContinental go up and down completely randomly.
Pair Corralation between Halyk Bank and InterContinental
Assuming the 90 days trading horizon Halyk Bank is expected to generate 1.1 times less return on investment than InterContinental. In addition to that, Halyk Bank is 1.24 times more volatile than InterContinental Hotels Group. It trades about 0.12 of its total potential returns per unit of risk. InterContinental Hotels Group is currently generating about 0.16 per unit of volatility. If you would invest 599,040 in InterContinental Hotels Group on September 15, 2024 and sell it today you would earn a total of 395,560 from holding InterContinental Hotels Group or generate 66.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Halyk Bank of vs. InterContinental Hotels Group
Performance |
| Timeline |
| Halyk Bank |
| InterContinental Hotels |
Halyk Bank and InterContinental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Halyk Bank and InterContinental
The main advantage of trading using opposite Halyk Bank and InterContinental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Halyk Bank position performs unexpectedly, InterContinental 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 InterContinental will offset losses from the drop in InterContinental's long position.| Halyk Bank vs. HCA Healthcare | Halyk Bank vs. MediaZest plc | Halyk Bank vs. Zinc Media Group | Halyk Bank vs. Spire Healthcare Group |
| InterContinental vs. Hyundai Motor | InterContinental vs. Toyota Motor Corp | InterContinental vs. SoftBank Group Corp | InterContinental 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |