Correlation Between Betmakers Technology and Kambi Group

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

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

Diversification Opportunities for Betmakers Technology and Kambi Group

0.23

Correlation Coefficient

Betmakers Technology  Kambi Group

Modest diversification

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

Pair Corralation between Betmakers Technology and Kambi Group

If you would invest  1,078  in Kambi Group plc on December 11, 2024 and sell it today you would earn a total of  38.00  from holding Kambi Group plc or generate 3.53% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	95.24%
Values	Daily Returns

Betmakers Technology Group  vs.  Kambi Group plc

Betmakers Technology

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Betmakers Technology Group are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly unfluctuating basic indicators, Betmakers Technology reported solid returns over the last few months and may actually be approaching a breakup point.

Kambi Group plc

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Kambi Group plc are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite nearly abnormal forward indicators, Kambi Group reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Betmakers Technology and Kambi Group

The main advantage of trading using opposite Betmakers Technology and Kambi Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Betmakers Technology 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 Betmakers Technology Group 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.

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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.