Correlation Between Halyk Bank and Capital Metals

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

Diversification Opportunities for Halyk Bank and Capital Metals

-0.54

Correlation Coefficient

Halyk Bank  Capital Metals

Excellent diversification

The 3 months correlation between Halyk and Capital is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Halyk Bank of and Capital Metals PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Capital Metals PLC 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 Capital Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Capital Metals PLC has no effect on the direction of Halyk Bank i.e., Halyk Bank and Capital Metals go up and down completely randomly.

Pair Corralation between Halyk Bank and Capital Metals

Assuming the 90 days trading horizon Halyk Bank of is expected to under-perform the Capital Metals. But the stock apears to be less risky and, when comparing its historical volatility, Halyk Bank of is 2.3 times less risky than Capital Metals. The stock trades about -0.04 of its potential returns per unit of risk. The Capital Metals PLC is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest  160.00  in Capital Metals PLC on November 27, 2024 and sell it today you would earn a total of  0.00  from holding Capital Metals PLC or generate 0.0% return on investment over 90 days.

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

Halyk Bank of  vs.  Capital Metals PLC

Halyk Bank

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Halyk Bank of are ranked lower than 6 (%) 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 March 2025.

Capital Metals PLC

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Capital Metals PLC are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Capital Metals 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 Capital Metals

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

The idea behind Halyk Bank of and Capital Metals PLC 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.

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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.