Correlation Between Halyk Bank and Games Workshop

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

Diversification Opportunities for Halyk Bank and Games Workshop

0.73

Correlation Coefficient

Halyk Bank  Games Workshop

Poor diversification

The 3 months correlation between Halyk and Games is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Halyk Bank of and Games Workshop Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Games Workshop Group 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 Games Workshop. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Games Workshop Group has no effect on the direction of Halyk Bank i.e., Halyk Bank and Games Workshop go up and down completely randomly.

Pair Corralation between Halyk Bank and Games Workshop

Assuming the 90 days trading horizon Halyk Bank of is expected to generate 0.76 times more return on investment than Games Workshop. However, Halyk Bank of is 1.32 times less risky than Games Workshop. It trades about 0.14 of its potential returns per unit of risk. Games Workshop Group is currently generating about 0.06 per unit of risk. If you would invest  788.00  in Halyk Bank of on September 29, 2024 and sell it today you would earn a total of  1,162  from holding Halyk Bank of or generate 147.46% return on investment over 90 days.

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

Halyk Bank of  vs.  Games Workshop Group

Halyk Bank

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Halyk Bank of are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Halyk Bank unveiled solid returns over the last few months and may actually be approaching a breakup point.

Games Workshop Group

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Games Workshop Group are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain technical and fundamental indicators, Games Workshop exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Halyk Bank and Games Workshop

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

The idea behind Halyk Bank of and Games Workshop Group 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.