Correlation Between Kambi Group and Lohilo Foods
Can any of the company-specific risk be diversified away by investing in both Kambi Group and Lohilo Foods 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 Lohilo Foods 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 Lohilo Foods AB, you can compare the effects of market volatilities on Kambi Group and Lohilo Foods 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 Lohilo Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kambi Group and Lohilo Foods.
Diversification Opportunities for Kambi Group and Lohilo Foods
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Kambi and Lohilo is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Kambi Group PLC and Lohilo Foods AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lohilo Foods 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 Lohilo Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lohilo Foods AB has no effect on the direction of Kambi Group i.e., Kambi Group and Lohilo Foods go up and down completely randomly.
Pair Corralation between Kambi Group and Lohilo Foods
Assuming the 90 days trading horizon Kambi Group PLC is expected to under-perform the Lohilo Foods. But the stock apears to be less risky and, when comparing its historical volatility, Kambi Group PLC is 1.77 times less risky than Lohilo Foods. The stock trades about -0.38 of its potential returns per unit of risk. The Lohilo Foods AB is currently generating about -0.19 of returns per unit of risk over similar time horizon. If you would invest 186.00 in Lohilo Foods AB on September 3, 2024 and sell it today you would lose (44.00) from holding Lohilo Foods AB or give up 23.66% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kambi Group PLC vs. Lohilo Foods AB
Performance |
| Timeline |
| Kambi Group PLC |
| Lohilo Foods AB |
Kambi Group and Lohilo Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kambi Group and Lohilo Foods
The main advantage of trading using opposite Kambi Group and Lohilo Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kambi Group position performs unexpectedly, Lohilo Foods 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 Lohilo Foods will offset losses from the drop in Lohilo Foods' long position.| Kambi Group vs. Evolution AB | Kambi Group vs. Embracer Group AB | Kambi Group vs. Betsson AB | Kambi Group vs. Catena Media plc |
| Lohilo Foods vs. Smart Eye AB | Lohilo Foods vs. Kamux Suomi Oy | Lohilo Foods vs. Zignsec AB | Lohilo Foods vs. Harvia Oyj |
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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