Correlation Between VIENNA INSURANCE and JSC Halyk
Can any of the company-specific risk be diversified away by investing in both VIENNA INSURANCE 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 VIENNA INSURANCE and JSC Halyk into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VIENNA INSURANCE GR and JSC Halyk bank, you can compare the effects of market volatilities on VIENNA INSURANCE 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 VIENNA INSURANCE with a short position of JSC Halyk. Check out your portfolio center. Please also check ongoing floating volatility patterns of VIENNA INSURANCE and JSC Halyk.
Diversification Opportunities for VIENNA INSURANCE and JSC Halyk
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between VIENNA and JSC is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding VIENNA INSURANCE GR 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 VIENNA INSURANCE 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 VIENNA INSURANCE GR 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 VIENNA INSURANCE i.e., VIENNA INSURANCE and JSC Halyk go up and down completely randomly.
Pair Corralation between VIENNA INSURANCE and JSC Halyk
Assuming the 90 days trading horizon VIENNA INSURANCE GR is expected to generate 0.25 times more return on investment than JSC Halyk. However, VIENNA INSURANCE GR is 3.98 times less risky than JSC Halyk. It trades about 0.45 of its potential returns per unit of risk. JSC Halyk bank is currently generating about -0.08 per unit of risk. If you would invest 3,045 in VIENNA INSURANCE GR on November 6, 2024 and sell it today you would earn a total of 175.00 from holding VIENNA INSURANCE GR or generate 5.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
VIENNA INSURANCE GR vs. JSC Halyk bank
Performance |
| Timeline |
| VIENNA INSURANCE |
| JSC Halyk bank |
VIENNA INSURANCE and JSC Halyk Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VIENNA INSURANCE and JSC Halyk
The main advantage of trading using opposite VIENNA INSURANCE and JSC Halyk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VIENNA INSURANCE 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.| VIENNA INSURANCE vs. TYSON FOODS A | VIENNA INSURANCE vs. SBM OFFSHORE | VIENNA INSURANCE vs. Tyson Foods | VIENNA INSURANCE vs. SOLSTAD OFFSHORE NK |
| JSC Halyk vs. Canon Marketing Japan | JSC Halyk vs. DeVry Education Group | JSC Halyk vs. EMBARK EDUCATION LTD | JSC Halyk vs. CHINA EDUCATION GROUP |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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