Correlation Between Halyk Bank and Spirax Sarco
Can any of the company-specific risk be diversified away by investing in both Halyk Bank and Spirax Sarco 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 Spirax Sarco 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 Spirax Sarco Engineering PLC, you can compare the effects of market volatilities on Halyk Bank and Spirax Sarco 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 Spirax Sarco. Check out your portfolio center. Please also check ongoing floating volatility patterns of Halyk Bank and Spirax Sarco.
Diversification Opportunities for Halyk Bank and Spirax Sarco
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Halyk and Spirax is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Halyk Bank of and Spirax Sarco Engineering PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Spirax Sarco Enginee 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 Spirax Sarco. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Spirax Sarco Enginee has no effect on the direction of Halyk Bank i.e., Halyk Bank and Spirax Sarco go up and down completely randomly.
Pair Corralation between Halyk Bank and Spirax Sarco
Assuming the 90 days trading horizon Halyk Bank is expected to generate 1.63 times less return on investment than Spirax Sarco. But when comparing it to its historical volatility, Halyk Bank of is 1.09 times less risky than Spirax Sarco. It trades about 0.14 of its potential returns per unit of risk. Spirax Sarco Engineering PLC is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 653,500 in Spirax Sarco Engineering PLC on August 31, 2024 and sell it today you would earn a total of 62,500 from holding Spirax Sarco Engineering PLC or generate 9.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Halyk Bank of vs. Spirax Sarco Engineering PLC
Performance |
| Timeline |
| Halyk Bank |
| Spirax Sarco Enginee |
Halyk Bank and Spirax Sarco Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Halyk Bank and Spirax Sarco
The main advantage of trading using opposite Halyk Bank and Spirax Sarco positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Halyk Bank position performs unexpectedly, Spirax Sarco 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 Spirax Sarco will offset losses from the drop in Spirax Sarco's long position.| Halyk Bank vs. Sunny Optical Technology | Halyk Bank vs. DXC Technology Co | Halyk Bank vs. Cognizant Technology Solutions | Halyk Bank vs. Raytheon Technologies Corp |
| Spirax Sarco vs. Futura Medical | Spirax Sarco vs. bet at home AG | Spirax Sarco vs. Cairn Homes PLC | Spirax Sarco vs. Fevertree Drinks 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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