Correlation Between Chocoladefabriken and Halyk Bank

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

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

Diversification Opportunities for Chocoladefabriken and Halyk Bank

-0.83

Correlation Coefficient

Chocoladefabriken  Halyk Bank

Pay attention - limited upside

The 3 months correlation between Chocoladefabriken and Halyk is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding Chocoladefabriken Lindt Spruen and Halyk Bank of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Halyk Bank and Chocoladefabriken 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 Chocoladefabriken Lindt Spruengli 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 Chocoladefabriken i.e., Chocoladefabriken and Halyk Bank go up and down completely randomly.

Pair Corralation between Chocoladefabriken and Halyk Bank

Assuming the 90 days trading horizon Chocoladefabriken Lindt Spruengli is expected to under-perform the Halyk Bank. But the stock apears to be less risky and, when comparing its historical volatility, Chocoladefabriken Lindt Spruengli is 2.11 times less risky than Halyk Bank. The stock trades about -0.06 of its potential returns per unit of risk. The Halyk Bank of is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest  1,776  in Halyk Bank of on August 31, 2024 and sell it today you would earn a total of  96.00  from holding Halyk Bank of or generate 5.41% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	95.65%
Values	Daily Returns

Chocoladefabriken Lindt Spruen  vs.  Halyk Bank of

Chocoladefabriken Lindt

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Chocoladefabriken Lindt Spruengli 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

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Halyk Bank of are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Halyk Bank may actually be approaching a critical reversion point that can send shares even higher in December 2024.

Pair Trading with Chocoladefabriken and Halyk Bank

The main advantage of trading using opposite Chocoladefabriken and Halyk Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chocoladefabriken 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 Chocoladefabriken Lindt Spruengli 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.