Correlation Between JSC Halyk and Materialise

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

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

Diversification Opportunities for JSC Halyk and Materialise

-0.43

Correlation Coefficient

JSC Halyk  Materialise

Very good diversification

The 3 months correlation between JSC and Materialise is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding JSC Halyk bank and Materialise NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Materialise NV and JSC Halyk 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 JSC Halyk bank are associated (or correlated) with Materialise. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Materialise NV has no effect on the direction of JSC Halyk i.e., JSC Halyk and Materialise go up and down completely randomly.

Pair Corralation between JSC Halyk and Materialise

Assuming the 90 days trading horizon JSC Halyk bank is expected to generate 0.48 times more return on investment than Materialise. However, JSC Halyk bank is 2.08 times less risky than Materialise. It trades about 0.06 of its potential returns per unit of risk. Materialise NV is currently generating about -0.08 per unit of risk. If you would invest  1,900  in JSC Halyk bank on December 24, 2024 and sell it today you would earn a total of  140.00  from holding JSC Halyk bank or generate 7.37% return on investment over 90 days.

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

JSC Halyk bank  vs.  Materialise NV

JSC Halyk bank

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in JSC Halyk bank are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile essential indicators, JSC Halyk may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Materialise NV

Risk-Adjusted Performance

Very Weak

Over the last 90 days Materialise NV has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with JSC Halyk and Materialise

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

The idea behind JSC Halyk bank and Materialise NV 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.