Correlation Between PureTech Health and Halyk Bank
Can any of the company-specific risk be diversified away by investing in both PureTech Health 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 PureTech Health and Halyk Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PureTech Health plc and Halyk Bank of, you can compare the effects of market volatilities on PureTech Health 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 PureTech Health with a short position of Halyk Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of PureTech Health and Halyk Bank.
Diversification Opportunities for PureTech Health and Halyk Bank
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PureTech and Halyk is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding PureTech Health plc and Halyk Bank of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Halyk Bank and PureTech Health 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 PureTech Health plc 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 PureTech Health i.e., PureTech Health and Halyk Bank go up and down completely randomly.
Pair Corralation between PureTech Health and Halyk Bank
Assuming the 90 days trading horizon PureTech Health plc is expected to under-perform the Halyk Bank. In addition to that, PureTech Health is 1.09 times more volatile than Halyk Bank of. It trades about -0.27 of its total potential returns per unit of risk. Halyk Bank of is currently generating about 0.17 per unit of volatility. If you would invest 1,876 in Halyk Bank of on October 22, 2024 and sell it today you would earn a total of 100.00 from holding Halyk Bank of or generate 5.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PureTech Health plc vs. Halyk Bank of
Performance |
| Timeline |
| PureTech Health plc |
| Halyk Bank |
PureTech Health and Halyk Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PureTech Health and Halyk Bank
The main advantage of trading using opposite PureTech Health and Halyk Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PureTech Health 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.| PureTech Health vs. Inspiration Healthcare Group | PureTech Health vs. Naturhouse Health SA | PureTech Health vs. Spire Healthcare Group | PureTech Health vs. Ecclesiastical Insurance Office |
| Halyk Bank vs. Pressure Technologies Plc | Halyk Bank vs. AMG Advanced Metallurgical | Halyk Bank vs. URU Metals | Halyk Bank vs. Bisichi Mining 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |