Correlation Between JSC Halyk and HF SINCLAIR

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

By analyzing existing cross correlation between JSC Halyk bank and HF SINCLAIR P, you can compare the effects of market volatilities on JSC Halyk and HF SINCLAIR 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 JSC Halyk with a short position of HF SINCLAIR. Check out your portfolio center. Please also check ongoing floating volatility patterns of JSC Halyk and HF SINCLAIR.

Diversification Opportunities for JSC Halyk and HF SINCLAIR

-0.42

Correlation Coefficient

JSC Halyk  HF SINCLAIR

Very good diversification

The 3 months correlation between JSC and HL80 is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding JSC Halyk bank and HF SINCLAIR P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HF SINCLAIR P and JSC Halyk 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 JSC Halyk bank are associated (or correlated) with HF SINCLAIR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HF SINCLAIR P has no effect on the direction of JSC Halyk i.e., JSC Halyk and HF SINCLAIR go up and down completely randomly.

Pair Corralation between JSC Halyk and HF SINCLAIR

Assuming the 90 days trading horizon JSC Halyk bank is expected to generate 2.03 times more return on investment than HF SINCLAIR. However, JSC Halyk is 2.03 times more volatile than HF SINCLAIR P. It trades about 0.04 of its potential returns per unit of risk. HF SINCLAIR P is currently generating about -0.55 per unit of risk. If you would invest  1,725  in JSC Halyk bank on September 29, 2024 and sell it today you would earn a total of  25.00  from holding JSC Halyk bank or generate 1.45% return on investment over 90 days.

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

JSC Halyk bank  vs.  HF SINCLAIR P

JSC Halyk bank

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in JSC Halyk bank are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain essential indicators, JSC Halyk reported solid returns over the last few months and may actually be approaching a breakup point.

HF SINCLAIR P

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days HF SINCLAIR P has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with JSC Halyk and HF SINCLAIR

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

The idea behind JSC Halyk bank and HF SINCLAIR P 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.