Correlation Between Kaspi Bank and Nova Mentis
Can any of the company-specific risk be diversified away by investing in both Kaspi Bank and Nova Mentis 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 Nova Mentis 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 Nova Mentis Life, you can compare the effects of market volatilities on Kaspi Bank and Nova Mentis 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 Nova Mentis. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kaspi Bank and Nova Mentis.
Diversification Opportunities for Kaspi Bank and Nova Mentis
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Kaspi and Nova is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Kaspi Bank Joint and Nova Mentis Life in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nova Mentis Life 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 Nova Mentis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nova Mentis Life has no effect on the direction of Kaspi Bank i.e., Kaspi Bank and Nova Mentis go up and down completely randomly.
Pair Corralation between Kaspi Bank and Nova Mentis
Assuming the 90 days horizon Kaspi Bank is expected to generate 6.93 times less return on investment than Nova Mentis. But when comparing it to its historical volatility, Kaspi Bank Joint is 12.55 times less risky than Nova Mentis. It trades about 0.07 of its potential returns per unit of risk. Nova Mentis Life is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 31.00 in Nova Mentis Life on September 3, 2024 and sell it today you would lose (28.40) from holding Nova Mentis Life or give up 91.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 30.71% |
| Values | Daily Returns |
Kaspi Bank Joint vs. Nova Mentis Life
Performance |
| Timeline |
| Kaspi Bank Joint |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Nova Mentis Life |
Kaspi Bank and Nova Mentis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kaspi Bank and Nova Mentis
The main advantage of trading using opposite Kaspi Bank and Nova Mentis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kaspi Bank position performs unexpectedly, Nova Mentis 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 Nova Mentis will offset losses from the drop in Nova Mentis' long position.| Kaspi Bank vs. Verint Systems | Kaspi Bank vs. Cellebrite DI | Kaspi Bank vs. Evertec | Kaspi Bank vs. CSG Systems International |
| Nova Mentis vs. Awakn Life Sciences | Nova Mentis vs. PsyBio Therapeutics Corp | Nova Mentis vs. HAVN Life Sciences | Nova Mentis vs. Wesana Health 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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