Correlation Between Entain DRC and Kambi Group
Can any of the company-specific risk be diversified away by investing in both Entain DRC 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 DRC 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 DRC PLC and Kambi Group plc, you can compare the effects of market volatilities on Entain DRC 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 DRC with a short position of Kambi Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Entain DRC and Kambi Group.
Diversification Opportunities for Entain DRC and Kambi Group
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Entain and Kambi is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Entain DRC 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 DRC 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 DRC 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 DRC i.e., Entain DRC and Kambi Group go up and down completely randomly.
Pair Corralation between Entain DRC and Kambi Group
Assuming the 90 days horizon Entain DRC is expected to generate 5.15 times less return on investment than Kambi Group. But when comparing it to its historical volatility, Entain DRC PLC is 1.02 times less risky than Kambi Group. It trades about 0.05 of its potential returns per unit of risk. Kambi Group plc is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 958.00 in Kambi Group plc on November 3, 2024 and sell it today you would earn a total of 162.00 from holding Kambi Group plc or generate 16.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Entain DRC PLC vs. Kambi Group plc
Performance |
| Timeline |
| Entain DRC PLC |
| Kambi Group plc |
Entain DRC and Kambi Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Entain DRC and Kambi Group
The main advantage of trading using opposite Entain DRC and Kambi Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Entain DRC 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 DRC vs. 888 Holdings | Entain DRC vs. Intema Solutions | Entain DRC vs. PointsBet Holdings Limited | Entain DRC vs. Royal Wins |
| Kambi Group vs. Light Wonder | Kambi Group vs. Everi Holdings | Kambi Group vs. PlayAGS | Kambi Group vs. Accel Entertainment |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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