Correlation Between CVR Energy and Halyk Bank

Can any of the company-specific risk be diversified away by investing in both CVR Energy and Halyk Bank 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 CVR Energy and Halyk Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between CVR Energy and Halyk Bank of, you can compare the effects of market volatilities on CVR Energy and Halyk Bank 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 CVR Energy with a short position of Halyk Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of CVR Energy and Halyk Bank.

Diversification Opportunities for CVR Energy and Halyk Bank

0.32

Correlation Coefficient

CVR Energy  Halyk Bank

Weak diversification

The 3 months correlation between CVR and Halyk is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding CVR Energy and Halyk Bank of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Halyk Bank and CVR Energy 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 CVR Energy are associated (or correlated) with Halyk Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Halyk Bank has no effect on the direction of CVR Energy i.e., CVR Energy and Halyk Bank go up and down completely randomly.

Pair Corralation between CVR Energy and Halyk Bank

Assuming the 90 days trading horizon CVR Energy is expected to generate 2.31 times more return on investment than Halyk Bank. However, CVR Energy is 2.31 times more volatile than Halyk Bank of. It trades about 0.07 of its potential returns per unit of risk. Halyk Bank of is currently generating about 0.15 per unit of risk. If you would invest  1,811  in CVR Energy on December 27, 2024 and sell it today you would earn a total of  185.00  from holding CVR Energy or generate 10.22% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	95.24%
Values	Daily Returns

CVR Energy  vs.  Halyk Bank of

CVR Energy

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in CVR Energy are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, CVR Energy unveiled solid returns over the last few months and may actually be approaching a breakup point.

Halyk Bank

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Halyk Bank of are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Halyk Bank may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with CVR Energy and Halyk Bank

The main advantage of trading using opposite CVR Energy and Halyk Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CVR Energy position performs unexpectedly, Halyk Bank 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 Halyk Bank will offset losses from the drop in Halyk Bank's long position.

The idea behind CVR Energy and Halyk Bank of 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.

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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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.