Correlation Between Kambi Group and Crunchfish
Can any of the company-specific risk be diversified away by investing in both Kambi Group and Crunchfish 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 Crunchfish 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 Crunchfish AB, you can compare the effects of market volatilities on Kambi Group and Crunchfish 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 Crunchfish. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kambi Group and Crunchfish.
Diversification Opportunities for Kambi Group and Crunchfish
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Kambi and Crunchfish is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Kambi Group PLC and Crunchfish AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Crunchfish 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 Crunchfish. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Crunchfish AB has no effect on the direction of Kambi Group i.e., Kambi Group and Crunchfish go up and down completely randomly.
Pair Corralation between Kambi Group and Crunchfish
Assuming the 90 days trading horizon Kambi Group PLC is expected to generate 0.67 times more return on investment than Crunchfish. However, Kambi Group PLC is 1.5 times less risky than Crunchfish. It trades about -0.37 of its potential returns per unit of risk. Crunchfish AB is currently generating about -0.26 per unit of risk. If you would invest 13,520 in Kambi Group PLC on September 1, 2024 and sell it today you would lose (3,270) from holding Kambi Group PLC or give up 24.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Kambi Group PLC vs. Crunchfish AB
Performance |
| Timeline |
| Kambi Group PLC |
| Crunchfish AB |
Kambi Group and Crunchfish Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kambi Group and Crunchfish
The main advantage of trading using opposite Kambi Group and Crunchfish positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kambi Group position performs unexpectedly, Crunchfish 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 Crunchfish will offset losses from the drop in Crunchfish'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 |
| Crunchfish vs. Catena Media plc | Crunchfish vs. Kambi Group PLC | Crunchfish vs. Betsson AB | Crunchfish vs. Invisio Communications 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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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