Correlation Between Evertec and Kaspi Bank

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

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

Diversification Opportunities for Evertec and Kaspi Bank

0.0

Correlation Coefficient

Evertec  Kaspi Bank

Pay attention - limited upside

The 3 months correlation between Evertec and Kaspi is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Evertec and Kaspi Bank Joint in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kaspi Bank Joint and Evertec 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 Evertec are associated (or correlated) with Kaspi Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kaspi Bank Joint has no effect on the direction of Evertec i.e., Evertec and Kaspi Bank go up and down completely randomly.

Pair Corralation between Evertec and Kaspi Bank

If you would invest  3,353  in Evertec on December 22, 2024 and sell it today you would earn a total of  371.00  from holding Evertec or generate 11.06% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Evertec  vs.  Kaspi Bank Joint

Evertec

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Evertec are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak basic indicators, Evertec may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Kaspi Bank Joint

Risk-Adjusted Performance

Very Weak

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

Pair Trading with Evertec and Kaspi Bank

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

The idea behind Evertec and Kaspi Bank Joint 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.