Correlation Between AeroVironment and JSC Halyk
Can any of the company-specific risk be diversified away by investing in both AeroVironment and JSC Halyk 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 AeroVironment and JSC Halyk into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AeroVironment and JSC Halyk bank, you can compare the effects of market volatilities on AeroVironment and JSC Halyk 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 AeroVironment with a short position of JSC Halyk. Check out your portfolio center. Please also check ongoing floating volatility patterns of AeroVironment and JSC Halyk.
Diversification Opportunities for AeroVironment and JSC Halyk
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AeroVironment and JSC is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding AeroVironment and JSC Halyk bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JSC Halyk bank and AeroVironment 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 AeroVironment are associated (or correlated) with JSC Halyk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JSC Halyk bank has no effect on the direction of AeroVironment i.e., AeroVironment and JSC Halyk go up and down completely randomly.
Pair Corralation between AeroVironment and JSC Halyk
Assuming the 90 days horizon AeroVironment is expected to generate 1.36 times less return on investment than JSC Halyk. But when comparing it to its historical volatility, AeroVironment is 1.08 times less risky than JSC Halyk. It trades about 0.06 of its potential returns per unit of risk. JSC Halyk bank is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 779.00 in JSC Halyk bank on October 10, 2024 and sell it today you would earn a total of 1,211 from holding JSC Halyk bank or generate 155.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AeroVironment vs. JSC Halyk bank
Performance |
| Timeline |
| AeroVironment |
| JSC Halyk bank |
AeroVironment and JSC Halyk Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AeroVironment and JSC Halyk
The main advantage of trading using opposite AeroVironment and JSC Halyk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AeroVironment position performs unexpectedly, JSC Halyk 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 JSC Halyk will offset losses from the drop in JSC Halyk's long position.| AeroVironment vs. THAI BEVERAGE | AeroVironment vs. Fevertree Drinks PLC | AeroVironment vs. The Home Depot | AeroVironment vs. Neinor Homes SA |
| JSC Halyk vs. Spirent Communications plc | JSC Halyk vs. Iridium Communications | JSC Halyk vs. Sumitomo Rubber Industries | JSC Halyk vs. SANOK RUBBER ZY |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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