Correlation Between Kambi Group and Oncopeptides
Can any of the company-specific risk be diversified away by investing in both Kambi Group and Oncopeptides 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 Oncopeptides 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 Oncopeptides AB, you can compare the effects of market volatilities on Kambi Group and Oncopeptides 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 Oncopeptides. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kambi Group and Oncopeptides.
Diversification Opportunities for Kambi Group and Oncopeptides
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kambi and Oncopeptides is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Kambi Group PLC and Oncopeptides AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oncopeptides 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 Oncopeptides. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oncopeptides AB has no effect on the direction of Kambi Group i.e., Kambi Group and Oncopeptides go up and down completely randomly.
Pair Corralation between Kambi Group and Oncopeptides
Assuming the 90 days trading horizon Kambi Group PLC is expected to under-perform the Oncopeptides. But the stock apears to be less risky and, when comparing its historical volatility, Kambi Group PLC is 1.78 times less risky than Oncopeptides. The stock trades about -0.37 of its potential returns per unit of risk. The Oncopeptides AB is currently generating about -0.16 of returns per unit of risk over similar time horizon. If you would invest 209.00 in Oncopeptides AB on September 1, 2024 and sell it today you would lose (44.00) from holding Oncopeptides AB or give up 21.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kambi Group PLC vs. Oncopeptides AB
Performance |
| Timeline |
| Kambi Group PLC |
| Oncopeptides AB |
Kambi Group and Oncopeptides Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kambi Group and Oncopeptides
The main advantage of trading using opposite Kambi Group and Oncopeptides positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kambi Group position performs unexpectedly, Oncopeptides 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 Oncopeptides will offset losses from the drop in Oncopeptides' long position.| Kambi Group vs. Evolution AB | Kambi Group vs. Embracer Group AB | Kambi Group vs. Betsson AB | Kambi Group vs. Catena Media plc |
| Oncopeptides vs. Hansa Biopharma AB | Oncopeptides vs. BioArctic AB | Oncopeptides vs. Sinch AB | Oncopeptides vs. Cantargia 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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