Correlation Between Halyk Bank and ImmuPharma PLC

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

Diversification Opportunities for Halyk Bank and ImmuPharma PLC

0.08

Correlation Coefficient

Halyk Bank  ImmuPharma PLC

Significant diversification

The 3 months correlation between Halyk and ImmuPharma is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Halyk Bank of and ImmuPharma PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ImmuPharma 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 ImmuPharma PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ImmuPharma PLC has no effect on the direction of Halyk Bank i.e., Halyk Bank and ImmuPharma PLC go up and down completely randomly.

Pair Corralation between Halyk Bank and ImmuPharma PLC

Assuming the 90 days trading horizon Halyk Bank is expected to generate 7.64 times less return on investment than ImmuPharma PLC. But when comparing it to its historical volatility, Halyk Bank of is 13.74 times less risky than ImmuPharma PLC. It trades about 0.22 of its potential returns per unit of risk. ImmuPharma PLC is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest  121.00  in ImmuPharma PLC on December 29, 2024 and sell it today you would earn a total of  173.00  from holding ImmuPharma PLC or generate 142.98% 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.  ImmuPharma PLC

Halyk Bank

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Halyk Bank of are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Halyk Bank unveiled solid returns over the last few months and may actually be approaching a breakup point.

ImmuPharma PLC

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in ImmuPharma PLC are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain technical and fundamental indicators, ImmuPharma PLC exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Halyk Bank and ImmuPharma PLC

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

The idea behind Halyk Bank of and ImmuPharma 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.

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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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.