Correlation Between G5 Entertainment and Halyk Bank
Can any of the company-specific risk be diversified away by investing in both G5 Entertainment 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 G5 Entertainment and Halyk Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between G5 Entertainment AB and Halyk Bank of, you can compare the effects of market volatilities on G5 Entertainment 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 G5 Entertainment with a short position of Halyk Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of G5 Entertainment and Halyk Bank.
Diversification Opportunities for G5 Entertainment and Halyk Bank
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between 0QUS and Halyk is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding G5 Entertainment AB and Halyk Bank of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Halyk Bank and G5 Entertainment 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 G5 Entertainment AB 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 G5 Entertainment i.e., G5 Entertainment and Halyk Bank go up and down completely randomly.
Pair Corralation between G5 Entertainment and Halyk Bank
Assuming the 90 days trading horizon G5 Entertainment AB is expected to generate 1.46 times more return on investment than Halyk Bank. However, G5 Entertainment is 1.46 times more volatile than Halyk Bank of. It trades about 0.12 of its potential returns per unit of risk. Halyk Bank of is currently generating about 0.11 per unit of risk. If you would invest 10,860 in G5 Entertainment AB on December 10, 2024 and sell it today you would earn a total of 1,880 from holding G5 Entertainment AB or generate 17.31% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
G5 Entertainment AB vs. Halyk Bank of
Performance |
Timeline |
G5 Entertainment |
Halyk Bank |
G5 Entertainment and Halyk Bank Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with G5 Entertainment and Halyk Bank
The main advantage of trading using opposite G5 Entertainment and Halyk Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if G5 Entertainment 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.G5 Entertainment vs. Aptitude Software Group | G5 Entertainment vs. Deutsche Pfandbriefbank AG | G5 Entertainment vs. Tetragon Financial Group | G5 Entertainment vs. Erste Group Bank |
Halyk Bank vs. Heavitree Brewery | Halyk Bank vs. National Beverage Corp | Halyk Bank vs. Endeavour Mining Corp | Halyk Bank vs. Blackrock World Mining |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |