Correlation Between MOL Hungarian and Halyk Bank

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

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

Diversification Opportunities for MOL Hungarian and Halyk Bank

0.0

Correlation Coefficient

MOL Hungarian  Halyk Bank

Pay attention - limited upside

The 3 months correlation between MOL and Halyk is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding MOL Hungarian Oil and Halyk Bank of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Halyk Bank and MOL Hungarian 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 MOL Hungarian Oil 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 MOL Hungarian i.e., MOL Hungarian and Halyk Bank go up and down completely randomly.

Pair Corralation between MOL Hungarian and Halyk Bank

If you would invest  1,837  in Halyk Bank of on November 29, 2024 and sell it today you would earn a total of  183.00  from holding Halyk Bank of or generate 9.96% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

MOL Hungarian Oil  vs.  Halyk Bank of

MOL Hungarian Oil

Risk-Adjusted Performance

Very Weak

Over the last 90 days MOL Hungarian Oil has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, MOL Hungarian is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Halyk Bank

Risk-Adjusted Performance

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 unsteady basic indicators, Halyk Bank may actually be approaching a critical reversion point that can send shares even higher in March 2025.

Pair Trading with MOL Hungarian and Halyk Bank

The main advantage of trading using opposite MOL Hungarian and Halyk Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MOL Hungarian 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 MOL Hungarian Oil 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.