Correlation Between Halyk Bank and Pressure Technologies

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

Diversification Opportunities for Halyk Bank and Pressure Technologies

-0.6

Correlation Coefficient

Halyk Bank  Pressure Technologies

Excellent diversification

The 3 months correlation between Halyk and Pressure is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Halyk Bank of and Pressure Technologies Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pressure Technologies 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 Pressure Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pressure Technologies Plc has no effect on the direction of Halyk Bank i.e., Halyk Bank and Pressure Technologies go up and down completely randomly.

Pair Corralation between Halyk Bank and Pressure Technologies

Assuming the 90 days trading horizon Halyk Bank of is expected to generate 0.57 times more return on investment than Pressure Technologies. However, Halyk Bank of is 1.74 times less risky than Pressure Technologies. It trades about 0.16 of its potential returns per unit of risk. Pressure Technologies Plc is currently generating about -0.07 per unit of risk. If you would invest  1,884  in Halyk Bank of on December 24, 2024 and sell it today you would earn a total of  246.00  from holding Halyk Bank of or generate 13.06% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	98.39%
Values	Daily Returns

Halyk Bank of  vs.  Pressure Technologies Plc

Halyk Bank

Risk-Adjusted Performance

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 uncertain basic indicators, Halyk Bank unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pressure Technologies Plc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Pressure Technologies Plc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with Halyk Bank and Pressure Technologies

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

The idea behind Halyk Bank of and Pressure Technologies 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.