Correlation Between Halyk Bank and Alien Metals
Can any of the company-specific risk be diversified away by investing in both Halyk Bank and Alien Metals 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 Alien Metals 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 Alien Metals, you can compare the effects of market volatilities on Halyk Bank and Alien Metals 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 Alien Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Halyk Bank and Alien Metals.
Diversification Opportunities for Halyk Bank and Alien Metals
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Halyk and Alien is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Halyk Bank of and Alien Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alien Metals 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 Alien Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alien Metals has no effect on the direction of Halyk Bank i.e., Halyk Bank and Alien Metals go up and down completely randomly.
Pair Corralation between Halyk Bank and Alien Metals
Assuming the 90 days trading horizon Halyk Bank of is expected to generate 0.42 times more return on investment than Alien Metals. However, Halyk Bank of is 2.36 times less risky than Alien Metals. It trades about 0.18 of its potential returns per unit of risk. Alien Metals is currently generating about -0.09 per unit of risk. If you would invest 1,876 in Halyk Bank of on October 24, 2024 and sell it today you would earn a total of 122.00 from holding Halyk Bank of or generate 6.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Halyk Bank of vs. Alien Metals
Performance |
| Timeline |
| Halyk Bank |
| Alien Metals |
Halyk Bank and Alien Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Halyk Bank and Alien Metals
The main advantage of trading using opposite Halyk Bank and Alien Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Halyk Bank position performs unexpectedly, Alien Metals 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 Alien Metals will offset losses from the drop in Alien Metals' long position.| Halyk Bank vs. Ecclesiastical Insurance Office | Halyk Bank vs. Batm Advanced Communications | Halyk Bank vs. MTI Wireless Edge | Halyk Bank vs. American Homes 4 |
| Alien Metals vs. Lundin Mining Corp | Alien Metals vs. Empire Metals Limited | Alien Metals vs. Software Circle plc | Alien Metals vs. Europa Metals |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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