Correlation Between Naturhouse Health and Halyk Bank

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

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

Diversification Opportunities for Naturhouse Health and Halyk Bank

0.38

Correlation Coefficient

Naturhouse Health  Halyk Bank

Weak diversification

The 3 months correlation between Naturhouse and Halyk is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Naturhouse Health SA and Halyk Bank of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Halyk Bank and Naturhouse Health 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 Naturhouse Health SA 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 Naturhouse Health i.e., Naturhouse Health and Halyk Bank go up and down completely randomly.

Pair Corralation between Naturhouse Health and Halyk Bank

Assuming the 90 days trading horizon Naturhouse Health is expected to generate 171.0 times less return on investment than Halyk Bank. In addition to that, Naturhouse Health is 1.28 times more volatile than Halyk Bank of. It trades about 0.0 of its total potential returns per unit of risk. Halyk Bank of is currently generating about 0.06 per unit of volatility. If you would invest  1,668  in Halyk Bank of on September 21, 2024 and sell it today you would earn a total of  140.00  from holding Halyk Bank of or generate 8.39% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	99.07%
Values	Daily Returns

Naturhouse Health SA  vs.  Halyk Bank of

Naturhouse Health

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Naturhouse Health SA are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Naturhouse Health is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Halyk Bank

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Halyk Bank of are ranked lower than 7 (%) 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 January 2025.

Pair Trading with Naturhouse Health and Halyk Bank

The main advantage of trading using opposite Naturhouse Health and Halyk Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Naturhouse Health 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 Naturhouse Health SA 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.

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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.