Correlation Between JSC Halyk and CLEAN ENERGY
Can any of the company-specific risk be diversified away by investing in both JSC Halyk and CLEAN ENERGY 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 CLEAN ENERGY 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 CLEAN ENERGY FUELS, you can compare the effects of market volatilities on JSC Halyk and CLEAN ENERGY 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 CLEAN ENERGY. Check out your portfolio center. Please also check ongoing floating volatility patterns of JSC Halyk and CLEAN ENERGY.
Diversification Opportunities for JSC Halyk and CLEAN ENERGY
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between JSC and CLEAN is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding JSC Halyk bank and CLEAN ENERGY FUELS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CLEAN ENERGY FUELS 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 CLEAN ENERGY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CLEAN ENERGY FUELS has no effect on the direction of JSC Halyk i.e., JSC Halyk and CLEAN ENERGY go up and down completely randomly.
Pair Corralation between JSC Halyk and CLEAN ENERGY
Assuming the 90 days trading horizon JSC Halyk bank is expected to generate 1.25 times more return on investment than CLEAN ENERGY. However, JSC Halyk is 1.25 times more volatile than CLEAN ENERGY FUELS. It trades about 0.22 of its potential returns per unit of risk. CLEAN ENERGY FUELS is currently generating about 0.2 per unit of risk. If you would invest 1,706 in JSC Halyk bank on October 11, 2024 and sell it today you would earn a total of 244.00 from holding JSC Halyk bank or generate 14.3% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 94.44% |
Values | Daily Returns |
JSC Halyk bank vs. CLEAN ENERGY FUELS
Performance |
Timeline |
JSC Halyk bank |
CLEAN ENERGY FUELS |
JSC Halyk and CLEAN ENERGY Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with JSC Halyk and CLEAN ENERGY
The main advantage of trading using opposite JSC Halyk and CLEAN ENERGY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JSC Halyk position performs unexpectedly, CLEAN ENERGY 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 CLEAN ENERGY will offset losses from the drop in CLEAN ENERGY's long position.JSC Halyk vs. Commercial Vehicle Group | JSC Halyk vs. Cogent Communications Holdings | JSC Halyk vs. ARDAGH METAL PACDL 0001 | JSC Halyk vs. GRIFFIN MINING LTD |
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Check out your portfolio center.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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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