Correlation Between Enersize and Kambi Group

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

By analyzing existing cross correlation between Enersize Oy and Kambi Group PLC, you can compare the effects of market volatilities on Enersize and Kambi Group 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 Enersize with a short position of Kambi Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enersize and Kambi Group.

Diversification Opportunities for Enersize and Kambi Group

0.57

Correlation Coefficient

Enersize  Kambi Group

Very weak diversification

The 3 months correlation between Enersize and Kambi is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Enersize Oy and Kambi Group PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kambi Group PLC and Enersize 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 Enersize Oy are associated (or correlated) with Kambi Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kambi Group PLC has no effect on the direction of Enersize i.e., Enersize and Kambi Group go up and down completely randomly.

Pair Corralation between Enersize and Kambi Group

Assuming the 90 days trading horizon Enersize Oy is expected to generate 2.72 times more return on investment than Kambi Group. However, Enersize is 2.72 times more volatile than Kambi Group PLC. It trades about 0.0 of its potential returns per unit of risk. Kambi Group PLC is currently generating about -0.13 per unit of risk. If you would invest  0.57  in Enersize Oy on September 12, 2024 and sell it today you would lose (0.07) from holding Enersize Oy or give up 12.28% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Enersize Oy  vs.  Kambi Group PLC

Enersize Oy

Risk-Adjusted Performance

0 of 100

Very Weak

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

Kambi Group PLC

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Kambi Group PLC has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in January 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Enersize and Kambi Group

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

The idea behind Enersize Oy and Kambi Group PLC 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.