Correlation Between Halyk Bank and SANTANDER
Can any of the company-specific risk be diversified away by investing in both Halyk Bank and SANTANDER 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 SANTANDER 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 SANTANDER UK 10, you can compare the effects of market volatilities on Halyk Bank and SANTANDER 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 SANTANDER. Check out your portfolio center. Please also check ongoing floating volatility patterns of Halyk Bank and SANTANDER.
Diversification Opportunities for Halyk Bank and SANTANDER
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Halyk and SANTANDER is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Halyk Bank of and SANTANDER UK 10 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SANTANDER UK 10 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 SANTANDER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SANTANDER UK 10 has no effect on the direction of Halyk Bank i.e., Halyk Bank and SANTANDER go up and down completely randomly.
Pair Corralation between Halyk Bank and SANTANDER
Assuming the 90 days trading horizon Halyk Bank of is expected to generate 15.51 times more return on investment than SANTANDER. However, Halyk Bank is 15.51 times more volatile than SANTANDER UK 10. It trades about 0.29 of its potential returns per unit of risk. SANTANDER UK 10 is currently generating about 0.02 per unit of risk. If you would invest 1,753 in Halyk Bank of on August 28, 2024 and sell it today you would earn a total of 167.00 from holding Halyk Bank of or generate 9.53% 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. SANTANDER UK 10
Performance |
| Timeline |
| Halyk Bank |
| SANTANDER UK 10 |
Halyk Bank and SANTANDER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Halyk Bank and SANTANDER
The main advantage of trading using opposite Halyk Bank and SANTANDER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Halyk Bank position performs unexpectedly, SANTANDER 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 SANTANDER will offset losses from the drop in SANTANDER's long position.| Halyk Bank vs. SupplyMe Capital PLC | Halyk Bank vs. Lloyds Banking Group | Halyk Bank vs. 88 Energy | Halyk Bank vs. Vodafone Group PLC |
| SANTANDER vs. Park Hotels Resorts | SANTANDER vs. Silvercorp Metals | SANTANDER vs. Endeavour Mining Corp | SANTANDER vs. Panther Metals PLC |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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