Correlation Between Entain Plc and Kambi Group
Can any of the company-specific risk be diversified away by investing in both Entain Plc 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 Entain Plc and Kambi Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Entain Plc and Kambi Group plc, you can compare the effects of market volatilities on Entain Plc 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 Entain Plc with a short position of Kambi Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Entain Plc and Kambi Group.
Diversification Opportunities for Entain Plc and Kambi Group
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Entain and Kambi is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Entain Plc 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 Entain Plc 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 Entain Plc 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 Entain Plc i.e., Entain Plc and Kambi Group go up and down completely randomly.
Pair Corralation between Entain Plc and Kambi Group
If you would invest 961.00 in Entain Plc on September 1, 2024 and sell it today you would earn a total of 48.00 from holding Entain Plc or generate 4.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Entain Plc vs. Kambi Group plc
Performance |
| Timeline |
| Entain Plc |
| Kambi Group plc |
Entain Plc and Kambi Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Entain Plc and Kambi Group
The main advantage of trading using opposite Entain Plc and Kambi Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Entain Plc 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.| Entain Plc vs. Intema Solutions | Entain Plc vs. 888 Holdings | Entain Plc vs. Real Luck Group | Entain Plc vs. Royal Wins |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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