Correlation Between Jacquet Metal and Halyk Bank

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

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

Diversification Opportunities for Jacquet Metal and Halyk Bank

0.26

Correlation Coefficient

Jacquet Metal  Halyk Bank

Modest diversification

The 3 months correlation between Jacquet and Halyk is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Jacquet Metal Service and Halyk Bank of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Halyk Bank and Jacquet Metal 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 Jacquet Metal Service 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 Jacquet Metal i.e., Jacquet Metal and Halyk Bank go up and down completely randomly.

Pair Corralation between Jacquet Metal and Halyk Bank

Assuming the 90 days trading horizon Jacquet Metal is expected to generate 1.19 times less return on investment than Halyk Bank. But when comparing it to its historical volatility, Jacquet Metal Service is 1.68 times less risky than Halyk Bank. It trades about 0.33 of its potential returns per unit of risk. Halyk Bank of is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest  1,862  in Halyk Bank of on October 6, 2024 and sell it today you would earn a total of  188.00  from holding Halyk Bank of or generate 10.1% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Jacquet Metal Service  vs.  Halyk Bank of

Jacquet Metal Service

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Jacquet Metal Service are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Jacquet Metal may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Halyk Bank

Risk-Adjusted Performance

16 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Halyk Bank of are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, Halyk Bank unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Jacquet Metal and Halyk Bank

The main advantage of trading using opposite Jacquet Metal and Halyk Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jacquet Metal 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 Jacquet Metal Service 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.