Correlation Between KOOL2PLAY and JSC Halyk

Can any of the company-specific risk be diversified away by investing in both KOOL2PLAY and JSC Halyk 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 KOOL2PLAY and JSC Halyk into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between KOOL2PLAY SA ZY and JSC Halyk bank, you can compare the effects of market volatilities on KOOL2PLAY and JSC Halyk 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 KOOL2PLAY with a short position of JSC Halyk. Check out your portfolio center. Please also check ongoing floating volatility patterns of KOOL2PLAY and JSC Halyk.

Diversification Opportunities for KOOL2PLAY and JSC Halyk

0.41

Correlation Coefficient

KOOL2PLAY  JSC Halyk

Very weak diversification

The 3 months correlation between KOOL2PLAY and JSC is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding KOOL2PLAY SA ZY and JSC Halyk bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JSC Halyk bank and KOOL2PLAY 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 KOOL2PLAY SA ZY are associated (or correlated) with JSC Halyk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JSC Halyk bank has no effect on the direction of KOOL2PLAY i.e., KOOL2PLAY and JSC Halyk go up and down completely randomly.

Pair Corralation between KOOL2PLAY and JSC Halyk

Assuming the 90 days horizon KOOL2PLAY SA ZY is expected to generate 2.06 times more return on investment than JSC Halyk. However, KOOL2PLAY is 2.06 times more volatile than JSC Halyk bank. It trades about 0.08 of its potential returns per unit of risk. JSC Halyk bank is currently generating about 0.1 per unit of risk. If you would invest  16.00  in KOOL2PLAY SA ZY on December 29, 2024 and sell it today you would earn a total of  4.00  from holding KOOL2PLAY SA ZY or generate 25.0% return on investment over 90 days.

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

KOOL2PLAY SA ZY  vs.  JSC Halyk bank

KOOL2PLAY SA ZY

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in KOOL2PLAY SA ZY are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, KOOL2PLAY reported solid returns over the last few months and may actually be approaching a breakup point.

JSC Halyk bank

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in JSC Halyk bank are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile essential indicators, JSC Halyk reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with KOOL2PLAY and JSC Halyk

The main advantage of trading using opposite KOOL2PLAY and JSC Halyk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KOOL2PLAY position performs unexpectedly, JSC Halyk 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 JSC Halyk will offset losses from the drop in JSC Halyk's long position.

The idea behind KOOL2PLAY SA ZY and JSC Halyk bank 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.