Correlation Between TFS FINANCIAL and JSC Halyk
Can any of the company-specific risk be diversified away by investing in both TFS FINANCIAL 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 TFS FINANCIAL and JSC Halyk into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TFS FINANCIAL and JSC Halyk bank, you can compare the effects of market volatilities on TFS FINANCIAL 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 TFS FINANCIAL with a short position of JSC Halyk. Check out your portfolio center. Please also check ongoing floating volatility patterns of TFS FINANCIAL and JSC Halyk.
Diversification Opportunities for TFS FINANCIAL and JSC Halyk
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between TFS and JSC is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding TFS FINANCIAL 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 TFS FINANCIAL 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 TFS FINANCIAL 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 TFS FINANCIAL i.e., TFS FINANCIAL and JSC Halyk go up and down completely randomly.
Pair Corralation between TFS FINANCIAL and JSC Halyk
Assuming the 90 days trading horizon TFS FINANCIAL is expected to generate 0.41 times more return on investment than JSC Halyk. However, TFS FINANCIAL is 2.42 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 0.03 per unit of risk. If you would invest 1,134 in TFS FINANCIAL on September 3, 2024 and sell it today you would earn a total of 196.00 from holding TFS FINANCIAL or generate 17.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
TFS FINANCIAL vs. JSC Halyk bank
Performance |
| Timeline |
| TFS FINANCIAL |
| JSC Halyk bank |
TFS FINANCIAL and JSC Halyk Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TFS FINANCIAL and JSC Halyk
The main advantage of trading using opposite TFS FINANCIAL and JSC Halyk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TFS FINANCIAL 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.| TFS FINANCIAL vs. Gladstone Investment | TFS FINANCIAL vs. Infrastrutture Wireless Italiane | TFS FINANCIAL vs. WillScot Mobile Mini | TFS FINANCIAL vs. HK Electric Investments |
| JSC Halyk vs. Alaska Air Group | JSC Halyk vs. ALTAIR RES INC | JSC Halyk vs. NORWEGIAN AIR SHUT | JSC Halyk vs. Enter Air SA |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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