Correlation Between Kaspi Bank and GSE Systems
Can any of the company-specific risk be diversified away by investing in both Kaspi Bank and GSE Systems 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 GSE Systems 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 GSE Systems, you can compare the effects of market volatilities on Kaspi Bank and GSE Systems 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 GSE Systems. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kaspi Bank and GSE Systems.
Diversification Opportunities for Kaspi Bank and GSE Systems
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kaspi and GSE is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Kaspi Bank Joint and GSE Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GSE Systems 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 GSE Systems. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GSE Systems has no effect on the direction of Kaspi Bank i.e., Kaspi Bank and GSE Systems go up and down completely randomly.
Pair Corralation between Kaspi Bank and GSE Systems
If you would invest 380.00 in GSE Systems on September 12, 2024 and sell it today you would earn a total of 79.00 from holding GSE Systems or generate 20.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 0.92% |
| Values | Daily Returns |
Kaspi Bank Joint vs. GSE Systems
Performance |
| Timeline |
| Kaspi Bank Joint |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| GSE Systems |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Solid
Kaspi Bank and GSE Systems Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kaspi Bank and GSE Systems
The main advantage of trading using opposite Kaspi Bank and GSE Systems positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kaspi Bank position performs unexpectedly, GSE Systems 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 GSE Systems will offset losses from the drop in GSE Systems' long position.| Kaspi Bank vs. Verint Systems | Kaspi Bank vs. Cellebrite DI | Kaspi Bank vs. Evertec | Kaspi Bank vs. CSG Systems International |
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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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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