Correlation Between REINET INVESTMENTS and JSC Halyk
Can any of the company-specific risk be diversified away by investing in both REINET INVESTMENTS 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 REINET INVESTMENTS and JSC Halyk into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between REINET INVESTMENTS SCA and JSC Halyk bank, you can compare the effects of market volatilities on REINET INVESTMENTS 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 REINET INVESTMENTS with a short position of JSC Halyk. Check out your portfolio center. Please also check ongoing floating volatility patterns of REINET INVESTMENTS and JSC Halyk.
Diversification Opportunities for REINET INVESTMENTS and JSC Halyk
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between REINET and JSC is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding REINET INVESTMENTS SCA 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 REINET INVESTMENTS 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 REINET INVESTMENTS SCA 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 REINET INVESTMENTS i.e., REINET INVESTMENTS and JSC Halyk go up and down completely randomly.
Pair Corralation between REINET INVESTMENTS and JSC Halyk
Assuming the 90 days horizon REINET INVESTMENTS SCA is expected to under-perform the JSC Halyk. But the stock apears to be less risky and, when comparing its historical volatility, REINET INVESTMENTS SCA is 2.93 times less risky than JSC Halyk. The stock trades about -0.02 of its potential returns per unit of risk. The JSC Halyk bank is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 1,710 in JSC Halyk bank on September 1, 2024 and sell it today you would earn a total of 90.00 from holding JSC Halyk bank or generate 5.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
REINET INVESTMENTS SCA vs. JSC Halyk bank
Performance |
| Timeline |
| REINET INVESTMENTS SCA |
| JSC Halyk bank |
REINET INVESTMENTS and JSC Halyk Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with REINET INVESTMENTS and JSC Halyk
The main advantage of trading using opposite REINET INVESTMENTS and JSC Halyk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if REINET INVESTMENTS 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.| REINET INVESTMENTS vs. LG Display Co | REINET INVESTMENTS vs. ETFS Coffee ETC | REINET INVESTMENTS vs. Luckin Coffee | REINET INVESTMENTS vs. Madison Square Garden |
| JSC Halyk vs. Automatic Data Processing | JSC Halyk vs. Cass Information Systems | JSC Halyk vs. TELES Informationstechnologien AG | JSC Halyk vs. Hyrican Informationssysteme Aktiengesellschaft |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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