Correlation Between JSC Halyk and Deutsche Balaton

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

Diversification Opportunities for JSC Halyk and Deutsche Balaton

0.0

Correlation Coefficient

JSC Halyk  Deutsche Balaton

Pay attention - limited upside

The 3 months correlation between JSC and Deutsche is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding JSC Halyk bank and Deutsche Balaton AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Deutsche Balaton 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 Deutsche Balaton. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Deutsche Balaton has no effect on the direction of JSC Halyk i.e., JSC Halyk and Deutsche Balaton go up and down completely randomly.

Pair Corralation between JSC Halyk and Deutsche Balaton

If you would invest  1,700  in JSC Halyk bank on December 20, 2024 and sell it today you would earn a total of  320.00  from holding JSC Halyk bank or generate 18.82% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.69%
Values	Daily Returns

JSC Halyk bank  vs.  Deutsche Balaton AG

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 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain essential indicators, JSC Halyk reported solid returns over the last few months and may actually be approaching a breakup point.

Deutsche Balaton

Risk-Adjusted Performance

Very Weak

Over the last 90 days Deutsche Balaton AG has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent technical indicators, Deutsche Balaton is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with JSC Halyk and Deutsche Balaton

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

The idea behind JSC Halyk bank and Deutsche Balaton AG 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.