Correlation Between Halyk Bank and RTW Venture

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

Diversification Opportunities for Halyk Bank and RTW Venture

-0.74

Correlation Coefficient

Halyk Bank  RTW Venture

Pay attention - limited upside

The 3 months correlation between Halyk and RTW is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Halyk Bank of and RTW Venture Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RTW Venture Fund 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 RTW Venture. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RTW Venture Fund has no effect on the direction of Halyk Bank i.e., Halyk Bank and RTW Venture go up and down completely randomly.

Pair Corralation between Halyk Bank and RTW Venture

Assuming the 90 days trading horizon Halyk Bank of is expected to generate 1.38 times more return on investment than RTW Venture. However, Halyk Bank is 1.38 times more volatile than RTW Venture Fund. It trades about 0.22 of its potential returns per unit of risk. RTW Venture Fund is currently generating about -0.15 per unit of risk. If you would invest  1,922  in Halyk Bank of on December 29, 2024 and sell it today you would earn a total of  548.00  from holding Halyk Bank of or generate 28.51% return on investment over 90 days.

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

Halyk Bank of  vs.  RTW Venture Fund

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.

RTW Venture Fund

Risk-Adjusted Performance

Very Weak

Over the last 90 days RTW Venture Fund has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's technical and fundamental indicators remain rather sound which may send shares a bit higher in April 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with Halyk Bank and RTW Venture

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

The idea behind Halyk Bank of and RTW Venture Fund 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.