Correlation Between Kambi Group and PointsBet Holdings
Can any of the company-specific risk be diversified away by investing in both Kambi Group and PointsBet Holdings 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 PointsBet Holdings 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 PointsBet Holdings Limited, you can compare the effects of market volatilities on Kambi Group and PointsBet Holdings 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 PointsBet Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kambi Group and PointsBet Holdings.
Diversification Opportunities for Kambi Group and PointsBet Holdings
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Kambi and PointsBet is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Kambi Group plc and PointsBet Holdings Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PointsBet Holdings 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 PointsBet Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PointsBet Holdings has no effect on the direction of Kambi Group i.e., Kambi Group and PointsBet Holdings go up and down completely randomly.
Pair Corralation between Kambi Group and PointsBet Holdings
Assuming the 90 days horizon Kambi Group plc is expected to under-perform the PointsBet Holdings. But the pink sheet apears to be less risky and, when comparing its historical volatility, Kambi Group plc is 2.07 times less risky than PointsBet Holdings. The pink sheet trades about -0.13 of its potential returns per unit of risk. The PointsBet Holdings Limited is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 50.00 in PointsBet Holdings Limited on September 26, 2024 and sell it today you would earn a total of 12.00 from holding PointsBet Holdings Limited or generate 24.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 68.25% |
Values | Daily Returns |
Kambi Group plc vs. PointsBet Holdings Limited
Performance |
Timeline |
Kambi Group plc |
PointsBet Holdings |
Kambi Group and PointsBet Holdings Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Kambi Group and PointsBet Holdings
The main advantage of trading using opposite Kambi Group and PointsBet Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kambi Group position performs unexpectedly, PointsBet Holdings 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 PointsBet Holdings will offset losses from the drop in PointsBet Holdings' long position.Kambi Group vs. Entain Plc | Kambi Group vs. PointsBet Holdings Limited | Kambi Group vs. Entain DRC PLC | Kambi Group vs. Dixons Carphone plc |
PointsBet Holdings vs. Entain Plc | PointsBet Holdings vs. Kambi Group plc | PointsBet Holdings vs. Entain DRC PLC | PointsBet Holdings vs. Dixons Carphone 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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