Correlation Between News and JSC Halyk
Can any of the company-specific risk be diversified away by investing in both News 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 News and JSC Halyk into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between News Corporation and JSC Halyk bank, you can compare the effects of market volatilities on News 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 News with a short position of JSC Halyk. Check out your portfolio center. Please also check ongoing floating volatility patterns of News and JSC Halyk.
Diversification Opportunities for News and JSC Halyk
Almost no diversification
The 3 months correlation between News and JSC is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding News Corp. 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 News 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 News Corporation 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 News i.e., News and JSC Halyk go up and down completely randomly.
Pair Corralation between News and JSC Halyk
Assuming the 90 days trading horizon News is expected to generate 1.49 times less return on investment than JSC Halyk. But when comparing it to its historical volatility, News Corporation is 3.28 times less risky than JSC Halyk. It trades about 0.08 of its potential returns per unit of risk. JSC Halyk bank is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,696 in JSC Halyk bank on September 13, 2024 and sell it today you would earn a total of 29.00 from holding JSC Halyk bank or generate 1.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
News Corp. vs. JSC Halyk bank
Performance |
| Timeline |
| News |
| JSC Halyk bank |
News and JSC Halyk Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with News and JSC Halyk
The main advantage of trading using opposite News and JSC Halyk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if News 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.| News vs. PACIFIC ONLINE | News vs. Verizon Communications | News vs. YATRA ONLINE DL 0001 | News vs. MUTUIONLINE |
| JSC Halyk vs. AGNC INVESTMENT | JSC Halyk vs. HK Electric Investments | JSC Halyk vs. Gamma Communications plc | JSC Halyk vs. Entravision Communications |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |