Correlation Between Kambi Group and SBB-B
Can any of the company-specific risk be diversified away by investing in both Kambi Group and SBB-B 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 Kambi Group and SBB-B into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kambi Group PLC and Samhllsbyggnadsbolaget i Norden, you can compare the effects of market volatilities on Kambi Group and SBB-B 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 Kambi Group with a short position of SBB-B. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kambi Group and SBB-B.
Diversification Opportunities for Kambi Group and SBB-B
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kambi and SBB-B is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Kambi Group PLC and Samhllsbyggnadsbolaget i Norde in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samhllsbyggnadsbolaget and Kambi Group 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 Kambi Group PLC are associated (or correlated) with SBB-B. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samhllsbyggnadsbolaget has no effect on the direction of Kambi Group i.e., Kambi Group and SBB-B go up and down completely randomly.
Pair Corralation between Kambi Group and SBB-B
Assuming the 90 days trading horizon Kambi Group PLC is expected to generate 0.63 times more return on investment than SBB-B. However, Kambi Group PLC is 1.58 times less risky than SBB-B. It trades about 0.02 of its potential returns per unit of risk. Samhllsbyggnadsbolaget i Norden is currently generating about -0.1 per unit of risk. If you would invest 10,090 in Kambi Group PLC on December 30, 2024 and sell it today you would earn a total of 200.00 from holding Kambi Group PLC or generate 1.98% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Kambi Group PLC vs. Samhllsbyggnadsbolaget i Norde
Performance |
Timeline |
Kambi Group PLC |
Samhllsbyggnadsbolaget |
Kambi Group and SBB-B Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Kambi Group and SBB-B
The main advantage of trading using opposite Kambi Group and SBB-B positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kambi Group position performs unexpectedly, SBB-B 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 SBB-B will offset losses from the drop in SBB-B's long position.Kambi Group vs. Evolution AB | Kambi Group vs. Embracer Group AB | Kambi Group vs. Betsson AB | Kambi Group vs. Catena Media plc |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |