Correlation Between Halyk Bank and State Bank
Can any of the company-specific risk be diversified away by investing in both Halyk Bank and State Bank 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 State Bank 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 State Bank of, you can compare the effects of market volatilities on Halyk Bank and State Bank 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 State Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Halyk Bank and State Bank.
Diversification Opportunities for Halyk Bank and State Bank
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Halyk and State is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Halyk Bank of and State Bank of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on State Bank 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 State Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of State Bank has no effect on the direction of Halyk Bank i.e., Halyk Bank and State Bank go up and down completely randomly.
Pair Corralation between Halyk Bank and State Bank
Assuming the 90 days trading horizon Halyk Bank of is expected to generate 1.27 times more return on investment than State Bank. However, Halyk Bank is 1.27 times more volatile than State Bank of. It trades about -0.02 of its potential returns per unit of risk. State Bank of is currently generating about -0.18 per unit of risk. If you would invest 1,955 in Halyk Bank of on November 2, 2024 and sell it today you would lose (25.00) from holding Halyk Bank of or give up 1.28% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Halyk Bank of vs. State Bank of
Performance |
| Timeline |
| Halyk Bank |
| State Bank |
Halyk Bank and State Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Halyk Bank and State Bank
The main advantage of trading using opposite Halyk Bank and State Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Halyk Bank position performs unexpectedly, State Bank 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 State Bank will offset losses from the drop in State Bank's long position.| Halyk Bank vs. UNIQA Insurance Group | Halyk Bank vs. Central Asia Metals | Halyk Bank vs. Power Metal Resources | Halyk Bank vs. Ashtead Technology Holdings |
| State Bank vs. Micron Technology | State Bank vs. Ubisoft Entertainment | State Bank vs. Pressure Technologies Plc | State Bank vs. Symphony Environmental Technologies |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |