Correlation Between Halyk Bank and United States

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

Diversification Opportunities for Halyk Bank and United States

0.13

Correlation Coefficient

Halyk Bank  United States

Average diversification

The 3 months correlation between Halyk and United is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Halyk Bank of and United States Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on United States Steel 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 United States. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of United States Steel has no effect on the direction of Halyk Bank i.e., Halyk Bank and United States go up and down completely randomly.

Pair Corralation between Halyk Bank and United States

Assuming the 90 days trading horizon Halyk Bank of is expected to generate 0.5 times more return on investment than United States. However, Halyk Bank of is 2.0 times less risky than United States. It trades about 0.09 of its potential returns per unit of risk. United States Steel is currently generating about -0.09 per unit of risk. If you would invest  1,667  in Halyk Bank of on September 21, 2024 and sell it today you would earn a total of  141.00  from holding Halyk Bank of or generate 8.46% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Halyk Bank of  vs.  United States Steel

Halyk Bank

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Halyk Bank of are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Halyk Bank may actually be approaching a critical reversion point that can send shares even higher in January 2025.

United States Steel

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days United States Steel has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in January 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Halyk Bank and United States

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

The idea behind Halyk Bank of and United States Steel 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.