Correlation Between Halyk Bank and Optima Health
Can any of the company-specific risk be diversified away by investing in both Halyk Bank and Optima Health 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 Optima Health 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 Optima Health plc, you can compare the effects of market volatilities on Halyk Bank and Optima Health 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 Optima Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Halyk Bank and Optima Health.
Diversification Opportunities for Halyk Bank and Optima Health
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Halyk and Optima is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Halyk Bank of and Optima Health plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Optima Health 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 Optima Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Optima Health plc has no effect on the direction of Halyk Bank i.e., Halyk Bank and Optima Health go up and down completely randomly.
Pair Corralation between Halyk Bank and Optima Health
Assuming the 90 days trading horizon Halyk Bank of is expected to generate 1.29 times more return on investment than Optima Health. However, Halyk Bank is 1.29 times more volatile than Optima Health plc. It trades about 0.1 of its potential returns per unit of risk. Optima Health plc is currently generating about -0.01 per unit of risk. If you would invest 1,601 in Halyk Bank of on November 3, 2024 and sell it today you would earn a total of 317.00 from holding Halyk Bank of or generate 19.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 70.63% |
| Values | Daily Returns |
Halyk Bank of vs. Optima Health plc
Performance |
| Timeline |
| Halyk Bank |
| Optima Health plc |
Halyk Bank and Optima Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Halyk Bank and Optima Health
The main advantage of trading using opposite Halyk Bank and Optima Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Halyk Bank position performs unexpectedly, Optima Health 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 Optima Health will offset losses from the drop in Optima Health'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 |
| Optima Health vs. AMG Advanced Metallurgical | Optima Health vs. Wheaton Precious Metals | Optima Health vs. Liontrust Asset Management | Optima Health vs. Darden Restaurants |
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 .
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