Correlation Between Invisio Communications and Kambi Group
Can any of the company-specific risk be diversified away by investing in both Invisio Communications 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 Invisio Communications and Kambi Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Invisio Communications AB and Kambi Group PLC, you can compare the effects of market volatilities on Invisio Communications 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 Invisio Communications with a short position of Kambi Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Invisio Communications and Kambi Group.
Diversification Opportunities for Invisio Communications and Kambi Group
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Invisio and Kambi is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Invisio Communications AB 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 Invisio Communications 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 Invisio Communications AB 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 Invisio Communications i.e., Invisio Communications and Kambi Group go up and down completely randomly.
Pair Corralation between Invisio Communications and Kambi Group
Assuming the 90 days trading horizon Invisio Communications AB is expected to generate 0.83 times more return on investment than Kambi Group. However, Invisio Communications AB is 1.2 times less risky than Kambi Group. It trades about 0.06 of its potential returns per unit of risk. Kambi Group PLC is currently generating about -0.03 per unit of risk. If you would invest 16,475 in Invisio Communications AB on September 2, 2024 and sell it today you would earn a total of 11,725 from holding Invisio Communications AB or generate 71.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Invisio Communications AB vs. Kambi Group PLC
Performance |
| Timeline |
| Invisio Communications |
| Kambi Group PLC |
Invisio Communications and Kambi Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Invisio Communications and Kambi Group
The main advantage of trading using opposite Invisio Communications and Kambi Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Invisio Communications 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.| Invisio Communications vs. Hexatronic Group AB | Invisio Communications vs. CellaVision AB | Invisio Communications vs. Xvivo Perfusion AB | Invisio Communications vs. Sectra AB |
| Kambi Group vs. Evolution AB | Kambi Group vs. Embracer Group AB | Kambi Group vs. Betsson AB | Kambi Group vs. Catena Media 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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