Correlation Between SentinelOne and Kambi Group

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

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

Diversification Opportunities for SentinelOne and Kambi Group

-0.23

Correlation Coefficient

SentinelOne  Kambi Group

Very good diversification

The 3 months correlation between SentinelOne and Kambi is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne 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 SentinelOne 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 SentinelOne 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 SentinelOne i.e., SentinelOne and Kambi Group go up and down completely randomly.

Pair Corralation between SentinelOne and Kambi Group

Taking into account the 90-day investment horizon SentinelOne is expected to under-perform the Kambi Group. But the stock apears to be less risky and, when comparing its historical volatility, SentinelOne is 1.05 times less risky than Kambi Group. The stock trades about -0.11 of its potential returns per unit of risk. The Kambi Group plc is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  958.00  in Kambi Group plc on December 29, 2024 and sell it today you would earn a total of  23.00  from holding Kambi Group plc or generate 2.4% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.39%
Values	Daily Returns

SentinelOne  vs.  Kambi Group plc

SentinelOne

Risk-Adjusted Performance

Very Weak

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

Kambi Group plc

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Kambi Group plc are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable forward indicators, Kambi Group is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with SentinelOne and Kambi Group

The main advantage of trading using opposite SentinelOne and Kambi Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne 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 SentinelOne 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..