Correlation Between Primary Health and Halyk Bank

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

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

Diversification Opportunities for Primary Health and Halyk Bank

-0.84

Correlation Coefficient

Primary Health  Halyk Bank

Pay attention - limited upside

The 3 months correlation between Primary and Halyk is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding Primary Health Properties and Halyk Bank of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Halyk Bank and Primary Health 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 Primary Health Properties 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 Primary Health i.e., Primary Health and Halyk Bank go up and down completely randomly.

Pair Corralation between Primary Health and Halyk Bank

Assuming the 90 days trading horizon Primary Health Properties is expected to under-perform the Halyk Bank. But the stock apears to be less risky and, when comparing its historical volatility, Primary Health Properties is 1.45 times less risky than Halyk Bank. The stock trades about -0.12 of its potential returns per unit of risk. The Halyk Bank of is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest  1,668  in Halyk Bank of on September 26, 2024 and sell it today you would earn a total of  210.00  from holding Halyk Bank of or generate 12.59% return on investment over 90 days.

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

Primary Health Properties  vs.  Halyk Bank of

Primary Health Properties

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Primary Health Properties has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unsteady performance, the Stock's technical and fundamental indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

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 uncertain basic indicators, Halyk Bank may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Primary Health and Halyk Bank

The main advantage of trading using opposite Primary Health and Halyk Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Primary Health 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 Primary Health Properties 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.

Check out your portfolio center.

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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.