Correlation Between Kambi Group and MAG Interactive
Can any of the company-specific risk be diversified away by investing in both Kambi Group and MAG Interactive 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 MAG Interactive 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 MAG Interactive AB, you can compare the effects of market volatilities on Kambi Group and MAG Interactive 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 MAG Interactive. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kambi Group and MAG Interactive.
Diversification Opportunities for Kambi Group and MAG Interactive
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Kambi and MAG is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Kambi Group PLC and MAG Interactive AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MAG Interactive 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 MAG Interactive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MAG Interactive AB has no effect on the direction of Kambi Group i.e., Kambi Group and MAG Interactive go up and down completely randomly.
Pair Corralation between Kambi Group and MAG Interactive
Assuming the 90 days trading horizon Kambi Group PLC is expected to generate 1.06 times more return on investment than MAG Interactive. However, Kambi Group is 1.06 times more volatile than MAG Interactive AB. It trades about -0.03 of its potential returns per unit of risk. MAG Interactive AB is currently generating about -0.07 per unit of risk. If you would invest 19,700 in Kambi Group PLC on August 28, 2024 and sell it today you would lose (8,910) from holding Kambi Group PLC or give up 45.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kambi Group PLC vs. MAG Interactive AB
Performance |
| Timeline |
| Kambi Group PLC |
| MAG Interactive AB |
Kambi Group and MAG Interactive Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kambi Group and MAG Interactive
The main advantage of trading using opposite Kambi Group and MAG Interactive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kambi Group position performs unexpectedly, MAG Interactive 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 MAG Interactive will offset losses from the drop in MAG Interactive'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 |
| MAG Interactive vs. Flexion Mobile PLC | MAG Interactive vs. iZafe Group AB | MAG Interactive vs. KABE Group AB | MAG Interactive vs. IAR Systems Group |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |