Correlation Between Dow Jones and JSC Halyk
Can any of the company-specific risk be diversified away by investing in both Dow Jones and JSC Halyk 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 Dow Jones and JSC Halyk into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dow Jones Industrial and JSC Halyk bank, you can compare the effects of market volatilities on Dow Jones and JSC Halyk 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 Dow Jones with a short position of JSC Halyk. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dow Jones and JSC Halyk.
Diversification Opportunities for Dow Jones and JSC Halyk
Poor diversification
The 3 months correlation between Dow and JSC is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Dow Jones Industrial and JSC Halyk bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JSC Halyk bank and Dow Jones 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 Dow Jones Industrial are associated (or correlated) with JSC Halyk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JSC Halyk bank has no effect on the direction of Dow Jones i.e., Dow Jones and JSC Halyk go up and down completely randomly.
Pair Corralation between Dow Jones and JSC Halyk
Assuming the 90 days trading horizon Dow Jones is expected to generate 2.26 times less return on investment than JSC Halyk. But when comparing it to its historical volatility, Dow Jones Industrial is 4.33 times less risky than JSC Halyk. It trades about 0.13 of its potential returns per unit of risk. JSC Halyk bank is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 2,035 in JSC Halyk bank on July 28, 2025 and sell it today you would earn a total of 205.00 from holding JSC Halyk bank or generate 10.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.48% |
| Values | Daily Returns |
Dow Jones Industrial vs. JSC Halyk bank
Performance |
| Timeline |
Dow Jones and JSC Halyk Volatility Contrast
Predicted Return Density |
| Returns |
Dow Jones Industrial
Pair trading matchups for Dow Jones
JSC Halyk bank
Pair trading matchups for JSC Halyk
Pair Trading with Dow Jones and JSC Halyk
The main advantage of trading using opposite Dow Jones and JSC Halyk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dow Jones position performs unexpectedly, JSC Halyk 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 JSC Halyk will offset losses from the drop in JSC Halyk's long position.| Dow Jones vs. Xiabuxiabu Catering Management | Dow Jones vs. Greentown Management Holdings | Dow Jones vs. Rogers Communications | Dow Jones vs. Avidus Management Group |
| JSC Halyk vs. TOMBADOR IRON LTD | JSC Halyk vs. AeroVironment | JSC Halyk vs. MAANSHAN IRON H | JSC Halyk vs. Canadian Utilities Limited |
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 AI Portfolio Prophet module to use AI to generate optimal portfolios and find profitable investment opportunities.
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