Correlation Between Panther Metals and Halyk Bank

Can any of the company-specific risk be diversified away by investing in both Panther Metals and Halyk Bank 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 Panther Metals and Halyk Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Panther Metals PLC and Halyk Bank of, you can compare the effects of market volatilities on Panther Metals and Halyk Bank 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 Panther Metals with a short position of Halyk Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Panther Metals and Halyk Bank.

Diversification Opportunities for Panther Metals and Halyk Bank

0.7

Correlation Coefficient

Panther Metals  Halyk Bank

Poor diversification

The 3 months correlation between Panther and Halyk is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Panther Metals PLC and Halyk Bank of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Halyk Bank and Panther Metals 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 Panther Metals PLC are associated (or correlated) with Halyk Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Halyk Bank has no effect on the direction of Panther Metals i.e., Panther Metals and Halyk Bank go up and down completely randomly.

Pair Corralation between Panther Metals and Halyk Bank

Assuming the 90 days trading horizon Panther Metals PLC is expected to generate 3.29 times more return on investment than Halyk Bank. However, Panther Metals is 3.29 times more volatile than Halyk Bank of. It trades about 0.14 of its potential returns per unit of risk. Halyk Bank of is currently generating about 0.18 per unit of risk. If you would invest  7,500  in Panther Metals PLC on September 13, 2024 and sell it today you would earn a total of  2,000  from holding Panther Metals PLC or generate 26.67% return on investment over 90 days.

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

Panther Metals PLC  vs.  Halyk Bank of

Panther Metals PLC

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Panther Metals PLC has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unsteady 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.

Halyk Bank

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Halyk Bank of are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, Halyk Bank may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Panther Metals and Halyk Bank

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

The idea behind Panther Metals PLC and Halyk Bank of 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.