Correlation Between Halyk Bank and Skandinaviska Enskilda

Can any of the company-specific risk be diversified away by investing in both Halyk Bank and Skandinaviska Enskilda 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 Halyk Bank and Skandinaviska Enskilda into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Halyk Bank of and Skandinaviska Enskilda Banken, you can compare the effects of market volatilities on Halyk Bank and Skandinaviska Enskilda 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 Halyk Bank with a short position of Skandinaviska Enskilda. Check out your portfolio center. Please also check ongoing floating volatility patterns of Halyk Bank and Skandinaviska Enskilda.

Diversification Opportunities for Halyk Bank and Skandinaviska Enskilda

0.59

Correlation Coefficient

Halyk Bank  Skandinaviska Enskilda

Very weak diversification

The 3 months correlation between Halyk and Skandinaviska is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Halyk Bank of and Skandinaviska Enskilda Banken in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Skandinaviska Enskilda and Halyk Bank 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 Halyk Bank of are associated (or correlated) with Skandinaviska Enskilda. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Skandinaviska Enskilda has no effect on the direction of Halyk Bank i.e., Halyk Bank and Skandinaviska Enskilda go up and down completely randomly.

Pair Corralation between Halyk Bank and Skandinaviska Enskilda

Assuming the 90 days trading horizon Halyk Bank of is expected to generate 1.05 times more return on investment than Skandinaviska Enskilda. However, Halyk Bank is 1.05 times more volatile than Skandinaviska Enskilda Banken. It trades about 0.14 of its potential returns per unit of risk. Skandinaviska Enskilda Banken is currently generating about 0.06 per unit of risk. If you would invest  769.00  in Halyk Bank of on December 2, 2024 and sell it today you would earn a total of  1,241  from holding Halyk Bank of or generate 161.38% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	96.79%
Values	Daily Returns

Halyk Bank of  vs.  Skandinaviska Enskilda Banken

Halyk Bank

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Halyk Bank of are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, Halyk Bank may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Skandinaviska Enskilda

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Skandinaviska Enskilda Banken are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Skandinaviska Enskilda unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Halyk Bank and Skandinaviska Enskilda

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

The idea behind Halyk Bank of and Skandinaviska Enskilda Banken 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.