Correlation Between JSC Halyk and Delta Air

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

Diversification Opportunities for JSC Halyk and Delta Air

-0.45

Correlation Coefficient

JSC Halyk  Delta Air

Very good diversification

The 3 months correlation between JSC and Delta is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding JSC Halyk bank and Delta Air Lines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Delta Air Lines 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 Delta Air. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Delta Air Lines has no effect on the direction of JSC Halyk i.e., JSC Halyk and Delta Air go up and down completely randomly.

Pair Corralation between JSC Halyk and Delta Air

Assuming the 90 days trading horizon JSC Halyk bank is expected to generate 0.94 times more return on investment than Delta Air. However, JSC Halyk bank is 1.06 times less risky than Delta Air. It trades about 0.01 of its potential returns per unit of risk. Delta Air Lines is currently generating about -0.17 per unit of risk. If you would invest  1,900  in JSC Halyk bank on December 25, 2024 and sell it today you would earn a total of  0.00  from holding JSC Halyk bank or generate 0.0% 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.  Delta Air Lines

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 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable essential indicators, JSC Halyk is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Delta Air Lines

Risk-Adjusted Performance

Very Weak

Over the last 90 days Delta Air Lines has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unsteady performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with JSC Halyk and Delta Air

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

The idea behind JSC Halyk bank and Delta Air Lines 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.