Correlation Between JSC Halyk and Newmont

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

Diversification Opportunities for JSC Halyk and Newmont

0.31

Correlation Coefficient

JSC Halyk  Newmont

Weak diversification

The 3 months correlation between JSC and Newmont is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding JSC Halyk bank and Newmont in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Newmont 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 Newmont. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Newmont has no effect on the direction of JSC Halyk i.e., JSC Halyk and Newmont go up and down completely randomly.

Pair Corralation between JSC Halyk and Newmont

Assuming the 90 days trading horizon JSC Halyk is expected to generate 1.19 times less return on investment than Newmont. In addition to that, JSC Halyk is 1.53 times more volatile than Newmont. It trades about 0.1 of its total potential returns per unit of risk. Newmont is currently generating about 0.18 per unit of volatility. If you would invest  3,648  in Newmont on December 21, 2024 and sell it today you would earn a total of  760.00  from holding Newmont or generate 20.83% 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.  Newmont

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 7 (%) 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.

Newmont

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Newmont are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile basic indicators, Newmont unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with JSC Halyk and Newmont

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

The idea behind JSC Halyk bank and Newmont 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .