Correlation Between Halyk Bank and Coeur Mining

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

Diversification Opportunities for Halyk Bank and Coeur Mining

-0.32

Correlation Coefficient

Halyk Bank  Coeur Mining

Very good diversification

The 3 months correlation between Halyk and Coeur is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Halyk Bank of and Coeur Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coeur Mining 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 Coeur Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coeur Mining has no effect on the direction of Halyk Bank i.e., Halyk Bank and Coeur Mining go up and down completely randomly.

Pair Corralation between Halyk Bank and Coeur Mining

Assuming the 90 days trading horizon Halyk Bank is expected to generate 1.55 times less return on investment than Coeur Mining. But when comparing it to its historical volatility, Halyk Bank of is 2.44 times less risky than Coeur Mining. It trades about 0.08 of its potential returns per unit of risk. Coeur Mining is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  472.00  in Coeur Mining on October 9, 2024 and sell it today you would earn a total of  138.00  from holding Coeur Mining or generate 29.24% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.42%
Values	Daily Returns

Halyk Bank of  vs.  Coeur Mining

Halyk Bank

Risk-Adjusted Performance

16 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Halyk Bank of are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, Halyk Bank unveiled solid returns over the last few months and may actually be approaching a breakup point.

Coeur Mining

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Coeur Mining are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Coeur Mining is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Halyk Bank and Coeur Mining

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

The idea behind Halyk Bank of and Coeur Mining 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 .