Correlation Between CHINA EAST and JSC Halyk

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both CHINA EAST 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 CHINA EAST and JSC Halyk into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CHINA EAST ED and JSC Halyk bank, you can compare the effects of market volatilities on CHINA EAST 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 CHINA EAST with a short position of JSC Halyk. Check out your portfolio center. Please also check ongoing floating volatility patterns of CHINA EAST and JSC Halyk.

Diversification Opportunities for CHINA EAST and JSC Halyk

-0.11
  Correlation Coefficient

Good diversification

The 3 months correlation between CHINA and JSC is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding CHINA EAST ED 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 CHINA EAST 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 CHINA EAST ED 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 CHINA EAST i.e., CHINA EAST and JSC Halyk go up and down completely randomly.

Pair Corralation between CHINA EAST and JSC Halyk

Assuming the 90 days horizon CHINA EAST ED is expected to under-perform the JSC Halyk. But the stock apears to be less risky and, when comparing its historical volatility, CHINA EAST ED is 2.57 times less risky than JSC Halyk. The stock trades about -0.46 of its potential returns per unit of risk. The JSC Halyk bank is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest  1,790  in JSC Halyk bank on October 15, 2024 and sell it today you would earn a total of  100.00  from holding JSC Halyk bank or generate 5.59% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

CHINA EAST ED  vs.  JSC Halyk bank

 Performance 
       Timeline  
CHINA EAST ED 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days CHINA EAST ED has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, CHINA EAST is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.
JSC Halyk bank 

Risk-Adjusted Performance

9 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in JSC Halyk bank are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak essential indicators, JSC Halyk reported solid returns over the last few months and may actually be approaching a breakup point.

CHINA EAST and JSC Halyk Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with CHINA EAST and JSC Halyk

The main advantage of trading using opposite CHINA EAST and JSC Halyk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CHINA EAST 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.
The idea behind CHINA EAST ED and JSC Halyk bank pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.

Other Complementary Tools

Performance Analysis
Check effects of mean-variance optimization against your current asset allocation
Pattern Recognition
Use different Pattern Recognition models to time the market across multiple global exchanges
Equity Analysis
Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities
Sync Your Broker
Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors.
Equity Forecasting
Use basic forecasting models to generate price predictions and determine price momentum