Correlation Between MAANSHAN IRON and JSC Halyk
Can any of the company-specific risk be diversified away by investing in both MAANSHAN IRON 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 MAANSHAN IRON and JSC Halyk into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MAANSHAN IRON H and JSC Halyk bank, you can compare the effects of market volatilities on MAANSHAN IRON 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 MAANSHAN IRON with a short position of JSC Halyk. Check out your portfolio center. Please also check ongoing floating volatility patterns of MAANSHAN IRON and JSC Halyk.
Diversification Opportunities for MAANSHAN IRON and JSC Halyk
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between MAANSHAN and JSC is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding MAANSHAN IRON H 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 MAANSHAN IRON 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 MAANSHAN IRON H 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 MAANSHAN IRON i.e., MAANSHAN IRON and JSC Halyk go up and down completely randomly.
Pair Corralation between MAANSHAN IRON and JSC Halyk
Assuming the 90 days trading horizon MAANSHAN IRON is expected to generate 1.79 times less return on investment than JSC Halyk. In addition to that, MAANSHAN IRON is 1.2 times more volatile than JSC Halyk bank. It trades about 0.03 of its total potential returns per unit of risk. JSC Halyk bank is currently generating about 0.07 per unit of volatility. If you would invest 786.00 in JSC Halyk bank on October 29, 2024 and sell it today you would earn a total of 1,124 from holding JSC Halyk bank or generate 143.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MAANSHAN IRON H vs. JSC Halyk bank
Performance |
| Timeline |
| MAANSHAN IRON H |
| JSC Halyk bank |
MAANSHAN IRON and JSC Halyk Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MAANSHAN IRON and JSC Halyk
The main advantage of trading using opposite MAANSHAN IRON and JSC Halyk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MAANSHAN IRON 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.| MAANSHAN IRON vs. BANK OF CHINA | MAANSHAN IRON vs. United Natural Foods | MAANSHAN IRON vs. CullenFrost Bankers | MAANSHAN IRON vs. CHIBA BANK |
| JSC Halyk vs. Salesforce | JSC Halyk vs. CODERE ONLINE LUX | JSC Halyk vs. Erste Group Bank | JSC Halyk vs. PACIFIC ONLINE |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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