Correlation Between Sunstone Hotel and JSC Halyk
Can any of the company-specific risk be diversified away by investing in both Sunstone Hotel 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 Sunstone Hotel and JSC Halyk into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sunstone Hotel Investors and JSC Halyk bank, you can compare the effects of market volatilities on Sunstone Hotel 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 Sunstone Hotel with a short position of JSC Halyk. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sunstone Hotel and JSC Halyk.
Diversification Opportunities for Sunstone Hotel and JSC Halyk
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sunstone and JSC is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Sunstone Hotel Investors 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 Sunstone Hotel 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 Sunstone Hotel Investors 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 Sunstone Hotel i.e., Sunstone Hotel and JSC Halyk go up and down completely randomly.
Pair Corralation between Sunstone Hotel and JSC Halyk
Assuming the 90 days horizon Sunstone Hotel is expected to generate 3.7 times less return on investment than JSC Halyk. But when comparing it to its historical volatility, Sunstone Hotel Investors is 2.5 times less risky than JSC Halyk. It trades about 0.04 of its potential returns per unit of risk. JSC Halyk bank is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,183 in JSC Halyk bank on August 29, 2024 and sell it today you would earn a total of 617.00 from holding JSC Halyk bank or generate 52.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sunstone Hotel Investors vs. JSC Halyk bank
Performance |
| Timeline |
| Sunstone Hotel Investors |
| JSC Halyk bank |
Sunstone Hotel and JSC Halyk Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sunstone Hotel and JSC Halyk
The main advantage of trading using opposite Sunstone Hotel and JSC Halyk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sunstone Hotel 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.| Sunstone Hotel vs. ADRIATIC METALS LS 013355 | Sunstone Hotel vs. GALENA MINING LTD | Sunstone Hotel vs. Ross Stores | Sunstone Hotel vs. Perseus Mining Limited |
| JSC Halyk vs. Lifeway Foods | JSC Halyk vs. SMA Solar Technology | JSC Halyk vs. Food Life Companies | JSC Halyk vs. X FAB Silicon Foundries |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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