Correlation Between BROADWIND ENRGY and JSC Halyk
Can any of the company-specific risk be diversified away by investing in both BROADWIND ENRGY 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 BROADWIND ENRGY and JSC Halyk into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BROADWIND ENRGY and JSC Halyk bank, you can compare the effects of market volatilities on BROADWIND ENRGY 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 BROADWIND ENRGY with a short position of JSC Halyk. Check out your portfolio center. Please also check ongoing floating volatility patterns of BROADWIND ENRGY and JSC Halyk.
Diversification Opportunities for BROADWIND ENRGY and JSC Halyk
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BROADWIND and JSC is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding BROADWIND ENRGY 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 BROADWIND ENRGY 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 BROADWIND ENRGY 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 BROADWIND ENRGY i.e., BROADWIND ENRGY and JSC Halyk go up and down completely randomly.
Pair Corralation between BROADWIND ENRGY and JSC Halyk
Assuming the 90 days trading horizon BROADWIND ENRGY is expected to generate 0.8 times more return on investment than JSC Halyk. However, BROADWIND ENRGY is 1.25 times less risky than JSC Halyk. It trades about 0.4 of its potential returns per unit of risk. JSC Halyk bank is currently generating about 0.24 per unit of risk. If you would invest 173.00 in BROADWIND ENRGY on October 9, 2024 and sell it today you would earn a total of 37.00 from holding BROADWIND ENRGY or generate 21.39% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
BROADWIND ENRGY vs. JSC Halyk bank
Performance |
Timeline |
BROADWIND ENRGY |
JSC Halyk bank |
BROADWIND ENRGY and JSC Halyk Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with BROADWIND ENRGY and JSC Halyk
The main advantage of trading using opposite BROADWIND ENRGY and JSC Halyk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BROADWIND ENRGY 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.BROADWIND ENRGY vs. SUN LIFE FINANCIAL | BROADWIND ENRGY vs. UNIQA INSURANCE GR | BROADWIND ENRGY vs. JSC Halyk bank | BROADWIND ENRGY vs. REVO INSURANCE SPA |
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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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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