Correlation Between Kaspi Bank and Defence Therapeutics
Can any of the company-specific risk be diversified away by investing in both Kaspi Bank and Defence Therapeutics 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 Kaspi Bank and Defence Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kaspi Bank Joint and Defence Therapeutics, you can compare the effects of market volatilities on Kaspi Bank and Defence Therapeutics 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 Kaspi Bank with a short position of Defence Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kaspi Bank and Defence Therapeutics.
Diversification Opportunities for Kaspi Bank and Defence Therapeutics
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Kaspi and Defence is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Kaspi Bank Joint and Defence Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Defence Therapeutics and Kaspi Bank 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 Kaspi Bank Joint are associated (or correlated) with Defence Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Defence Therapeutics has no effect on the direction of Kaspi Bank i.e., Kaspi Bank and Defence Therapeutics go up and down completely randomly.
Pair Corralation between Kaspi Bank and Defence Therapeutics
If you would invest 75.00 in Defence Therapeutics on December 1, 2024 and sell it today you would earn a total of 4.00 from holding Defence Therapeutics or generate 5.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Kaspi Bank Joint vs. Defence Therapeutics
Performance |
| Timeline |
| Kaspi Bank Joint |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| Defence Therapeutics |
Kaspi Bank and Defence Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kaspi Bank and Defence Therapeutics
The main advantage of trading using opposite Kaspi Bank and Defence Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kaspi Bank position performs unexpectedly, Defence Therapeutics 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 Defence Therapeutics will offset losses from the drop in Defence Therapeutics' long position.| Kaspi Bank vs. Verint Systems | Kaspi Bank vs. Cellebrite DI | Kaspi Bank vs. Evertec | Kaspi Bank vs. CSG Systems International |
| Defence Therapeutics vs. Sino Biopharmaceutical Ltd | Defence Therapeutics vs. Institute of Biomedical | Defence Therapeutics vs. Enlivex Therapeutics | Defence Therapeutics vs. Lixte Biotechnology Holdings |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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