Correlation Between Halyk Bank and Freeport McMoRan

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

Diversification Opportunities for Halyk Bank and Freeport McMoRan

-0.86

Correlation Coefficient

Halyk Bank  Freeport McMoRan

Pay attention - limited upside

The 3 months correlation between Halyk and Freeport is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding Halyk Bank of and Freeport McMoRan in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Freeport McMoRan 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 Freeport McMoRan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Freeport McMoRan has no effect on the direction of Halyk Bank i.e., Halyk Bank and Freeport McMoRan go up and down completely randomly.

Pair Corralation between Halyk Bank and Freeport McMoRan

Assuming the 90 days trading horizon Halyk Bank of is expected to generate 0.6 times more return on investment than Freeport McMoRan. However, Halyk Bank of is 1.66 times less risky than Freeport McMoRan. It trades about 0.14 of its potential returns per unit of risk. Freeport McMoRan is currently generating about 0.0 per unit of risk. If you would invest  782.00  in Halyk Bank of on October 4, 2024 and sell it today you would earn a total of  1,162  from holding Halyk Bank of or generate 148.59% return on investment over 90 days.

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

Halyk Bank of  vs.  Freeport McMoRan

Halyk Bank

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Halyk Bank of are ranked lower than 13 (%) 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.

Freeport McMoRan

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Freeport McMoRan 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 February 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 Freeport McMoRan

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

The idea behind Halyk Bank of and Freeport McMoRan 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.