Correlation Between Halyk Bank and Kodal Minerals

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

Diversification Opportunities for Halyk Bank and Kodal Minerals

-0.08

Correlation Coefficient

Halyk Bank  Kodal Minerals

Good diversification

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

Pair Corralation between Halyk Bank and Kodal Minerals

Assuming the 90 days trading horizon Halyk Bank is expected to generate 3.78 times less return on investment than Kodal Minerals. But when comparing it to its historical volatility, Halyk Bank of is 3.01 times less risky than Kodal Minerals. It trades about 0.17 of its potential returns per unit of risk. Kodal Minerals PLC is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest  35.00  in Kodal Minerals PLC on October 22, 2024 and sell it today you would earn a total of  7.00  from holding Kodal Minerals PLC or generate 20.0% return on investment over 90 days.

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

Halyk Bank of  vs.  Kodal Minerals PLC

Halyk Bank

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Halyk Bank of are ranked lower than 11 (%) 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.

Kodal Minerals PLC

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Kodal Minerals PLC are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain technical and fundamental indicators, Kodal Minerals may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Halyk Bank and Kodal Minerals

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

The idea behind Halyk Bank of and Kodal Minerals 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .