Correlation Between Halyk Bank and Northern Bear
Can any of the company-specific risk be diversified away by investing in both Halyk Bank and Northern Bear 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 Northern Bear 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 Northern Bear Plc, you can compare the effects of market volatilities on Halyk Bank and Northern Bear 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 Northern Bear. Check out your portfolio center. Please also check ongoing floating volatility patterns of Halyk Bank and Northern Bear.
Diversification Opportunities for Halyk Bank and Northern Bear
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Halyk and Northern is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Halyk Bank of and Northern Bear Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Northern Bear 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 Northern Bear. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Northern Bear Plc has no effect on the direction of Halyk Bank i.e., Halyk Bank and Northern Bear go up and down completely randomly.
Pair Corralation between Halyk Bank and Northern Bear
Assuming the 90 days trading horizon Halyk Bank of is expected to generate 2.01 times more return on investment than Northern Bear. However, Halyk Bank is 2.01 times more volatile than Northern Bear Plc. It trades about 0.18 of its potential returns per unit of risk. Northern Bear Plc is currently generating about 0.18 per unit of risk. If you would invest 1,814 in Halyk Bank of on October 1, 2024 and sell it today you would earn a total of 136.00 from holding Halyk Bank of or generate 7.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Halyk Bank of vs. Northern Bear Plc
Performance |
| Timeline |
| Halyk Bank |
| Northern Bear Plc |
Halyk Bank and Northern Bear Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Halyk Bank and Northern Bear
The main advantage of trading using opposite Halyk Bank and Northern Bear positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Halyk Bank position performs unexpectedly, Northern Bear 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 Northern Bear will offset losses from the drop in Northern Bear's long position.| Halyk Bank vs. Extra Space Storage | Halyk Bank vs. Gaztransport et Technigaz | Halyk Bank vs. Datalogic | Halyk Bank vs. Auto Trader Group |
| Northern Bear vs. Quadrise Plc | Northern Bear vs. ImmuPharma PLC | Northern Bear vs. Intuitive Investments Group | Northern Bear vs. European Metals Holdings |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Transaction History View history of all your transactions and understand their impact on performance |