Correlation Between Kambi Group and Acroud AB
Can any of the company-specific risk be diversified away by investing in both Kambi Group and Acroud AB 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 Kambi Group and Acroud AB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kambi Group PLC and Acroud AB, you can compare the effects of market volatilities on Kambi Group and Acroud AB 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 Kambi Group with a short position of Acroud AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kambi Group and Acroud AB.
Diversification Opportunities for Kambi Group and Acroud AB
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Kambi and Acroud is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Kambi Group PLC and Acroud AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acroud AB and Kambi Group 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 Kambi Group PLC are associated (or correlated) with Acroud AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acroud AB has no effect on the direction of Kambi Group i.e., Kambi Group and Acroud AB go up and down completely randomly.
Pair Corralation between Kambi Group and Acroud AB
Assuming the 90 days trading horizon Kambi Group PLC is expected to generate 0.66 times more return on investment than Acroud AB. However, Kambi Group PLC is 1.52 times less risky than Acroud AB. It trades about -0.03 of its potential returns per unit of risk. Acroud AB is currently generating about -0.06 per unit of risk. If you would invest 19,385 in Kambi Group PLC on September 3, 2024 and sell it today you would lose (9,135) from holding Kambi Group PLC or give up 47.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kambi Group PLC vs. Acroud AB
Performance |
| Timeline |
| Kambi Group PLC |
| Acroud AB |
Kambi Group and Acroud AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kambi Group and Acroud AB
The main advantage of trading using opposite Kambi Group and Acroud AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kambi Group position performs unexpectedly, Acroud AB 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 Acroud AB will offset losses from the drop in Acroud AB's long position.| Kambi Group vs. Evolution AB | Kambi Group vs. Embracer Group AB | Kambi Group vs. Betsson AB | Kambi Group vs. Catena Media plc |
| Acroud AB vs. Kambi Group PLC | Acroud AB vs. Betsson AB | Acroud AB vs. Evolution AB | Acroud AB vs. Embracer Group AB |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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