Correlation Between Halyk Bank and MG Plc
Can any of the company-specific risk be diversified away by investing in both Halyk Bank and MG Plc 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 MG Plc 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 MG Plc, you can compare the effects of market volatilities on Halyk Bank and MG Plc 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 MG Plc. Check out your portfolio center. Please also check ongoing floating volatility patterns of Halyk Bank and MG Plc.
Diversification Opportunities for Halyk Bank and MG Plc
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Halyk and MNG is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Halyk Bank of and MG Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MG Plc 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 MG Plc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MG Plc has no effect on the direction of Halyk Bank i.e., Halyk Bank and MG Plc go up and down completely randomly.
Pair Corralation between Halyk Bank and MG Plc
Assuming the 90 days trading horizon Halyk Bank of is expected to generate 0.95 times more return on investment than MG Plc. However, Halyk Bank of is 1.05 times less risky than MG Plc. It trades about 0.13 of its potential returns per unit of risk. MG Plc is currently generating about 0.04 per unit of risk. If you would invest 785.00 in Halyk Bank of on November 2, 2024 and sell it today you would earn a total of 1,145 from holding Halyk Bank of or generate 145.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Halyk Bank of vs. MG Plc
Performance |
| Timeline |
| Halyk Bank |
| MG Plc |
Halyk Bank and MG Plc Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Halyk Bank and MG Plc
The main advantage of trading using opposite Halyk Bank and MG Plc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Halyk Bank position performs unexpectedly, MG Plc 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 MG Plc will offset losses from the drop in MG Plc's long position.| Halyk Bank vs. AMG Advanced Metallurgical | Halyk Bank vs. Coeur Mining | Halyk Bank vs. Ebro Foods | Halyk Bank vs. European Metals Holdings |
| MG Plc vs. Verizon Communications | MG Plc vs. Geely Automobile Holdings | MG Plc vs. Hochschild Mining plc | MG Plc vs. Zoom Video Communications |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |