Correlation Between Verint Systems and Kaspi Bank

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

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

Diversification Opportunities for Verint Systems and Kaspi Bank

0.0

Correlation Coefficient

Verint Systems  Kaspi Bank

Pay attention - limited upside

The 3 months correlation between Verint and Kaspi is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Verint Systems 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 Verint Systems 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 Verint Systems 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 Verint Systems i.e., Verint Systems and Kaspi Bank go up and down completely randomly.

Pair Corralation between Verint Systems and Kaspi Bank

If you would invest (100.00) in Kaspi Bank Joint on December 2, 2024 and sell it today you would earn a total of  100.00  from holding Kaspi Bank Joint or generate -100.0% return on investment over 90 days.

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

Verint Systems  vs.  Kaspi Bank Joint

Verint Systems

Risk-Adjusted Performance

Very Weak

Over the last 90 days Verint Systems has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Verint Systems is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

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 Verint Systems and Kaspi Bank

The main advantage of trading using opposite Verint Systems and Kaspi Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Verint Systems 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 Verint Systems 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.

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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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.