Correlation Between JSC Halyk and Schlumberger

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

Diversification Opportunities for JSC Halyk and Schlumberger

0.27

Correlation Coefficient

JSC Halyk  Schlumberger

Modest diversification

The 3 months correlation between JSC and Schlumberger is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding JSC Halyk bank and Schlumberger Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Schlumberger Limited 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 Schlumberger. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Schlumberger Limited has no effect on the direction of JSC Halyk i.e., JSC Halyk and Schlumberger go up and down completely randomly.

Pair Corralation between JSC Halyk and Schlumberger

Assuming the 90 days trading horizon JSC Halyk bank is expected to generate 1.64 times more return on investment than Schlumberger. However, JSC Halyk is 1.64 times more volatile than Schlumberger Limited. It trades about 0.06 of its potential returns per unit of risk. Schlumberger Limited is currently generating about -0.04 per unit of risk. If you would invest  1,533  in JSC Halyk bank on September 23, 2024 and sell it today you would earn a total of  167.00  from holding JSC Halyk bank or generate 10.89% return on investment over 90 days.

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

JSC Halyk bank  vs.  Schlumberger Limited

JSC Halyk bank

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in JSC Halyk bank are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile essential indicators, JSC Halyk reported solid returns over the last few months and may actually be approaching a breakup point.

Schlumberger Limited

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Schlumberger Limited has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Schlumberger is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with JSC Halyk and Schlumberger

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

The idea behind JSC Halyk bank and Schlumberger Limited 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 Anywhere module to track or share privately all of your investments from the convenience of any device.