Correlation Between Nationwide Building and Halyk Bank
Can any of the company-specific risk be diversified away by investing in both Nationwide Building and Halyk 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 Nationwide Building and Halyk Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nationwide Building Society and Halyk Bank of, you can compare the effects of market volatilities on Nationwide Building and Halyk 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 Nationwide Building with a short position of Halyk Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nationwide Building and Halyk Bank.
Diversification Opportunities for Nationwide Building and Halyk Bank
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Nationwide and Halyk is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Nationwide Building Society and Halyk Bank of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Halyk Bank and Nationwide Building 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 Nationwide Building Society are associated (or correlated) with Halyk Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Halyk Bank has no effect on the direction of Nationwide Building i.e., Nationwide Building and Halyk Bank go up and down completely randomly.
Pair Corralation between Nationwide Building and Halyk Bank
Assuming the 90 days trading horizon Nationwide Building is expected to generate 12.24 times less return on investment than Halyk Bank. But when comparing it to its historical volatility, Nationwide Building Society is 1.74 times less risky than Halyk Bank. It trades about 0.02 of its potential returns per unit of risk. Halyk Bank of is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 766.00 in Halyk Bank of on September 24, 2024 and sell it today you would earn a total of 1,056 from holding Halyk Bank of or generate 137.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nationwide Building Society vs. Halyk Bank of
Performance |
| Timeline |
| Nationwide Building |
| Halyk Bank |
Nationwide Building and Halyk Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nationwide Building and Halyk Bank
The main advantage of trading using opposite Nationwide Building and Halyk Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nationwide Building position performs unexpectedly, Halyk 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 Halyk Bank will offset losses from the drop in Halyk Bank's long position.| Nationwide Building vs. Quadrise Plc | Nationwide Building vs. ImmuPharma PLC | Nationwide Building vs. Intuitive Investments Group | Nationwide Building vs. European Metals Holdings |
| Halyk Bank vs. CVR Energy | Halyk Bank vs. Viridian Therapeutics | Halyk Bank vs. Nationwide Building Society | Halyk Bank vs. Digital Realty Trust |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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