Correlation Between JSC Halyk and SANOK RUBBER

Can any of the company-specific risk be diversified away by investing in both JSC Halyk and SANOK RUBBER 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 SANOK RUBBER 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 SANOK RUBBER ZY, you can compare the effects of market volatilities on JSC Halyk and SANOK RUBBER 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 SANOK RUBBER. Check out your portfolio center. Please also check ongoing floating volatility patterns of JSC Halyk and SANOK RUBBER.

Diversification Opportunities for JSC Halyk and SANOK RUBBER

0.24

Correlation Coefficient

JSC Halyk  SANOK RUBBER

Modest diversification

The 3 months correlation between JSC and SANOK is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding JSC Halyk bank and SANOK RUBBER ZY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SANOK RUBBER ZY 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 SANOK RUBBER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SANOK RUBBER ZY has no effect on the direction of JSC Halyk i.e., JSC Halyk and SANOK RUBBER go up and down completely randomly.

Pair Corralation between JSC Halyk and SANOK RUBBER

Assuming the 90 days trading horizon JSC Halyk is expected to generate 1.67 times less return on investment than SANOK RUBBER. In addition to that, JSC Halyk is 1.03 times more volatile than SANOK RUBBER ZY. It trades about 0.07 of its total potential returns per unit of risk. SANOK RUBBER ZY is currently generating about 0.12 per unit of volatility. If you would invest  353.00  in SANOK RUBBER ZY on September 17, 2024 and sell it today you would earn a total of  99.00  from holding SANOK RUBBER ZY or generate 28.05% return on investment over 90 days.

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

JSC Halyk bank  vs.  SANOK RUBBER ZY

JSC Halyk bank

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in JSC Halyk bank are ranked lower than 5 (%) 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.

SANOK RUBBER ZY

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in SANOK RUBBER ZY are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, SANOK RUBBER reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with JSC Halyk and SANOK RUBBER

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

The idea behind JSC Halyk bank and SANOK RUBBER ZY 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.