Correlation Between Kambi Group and Rejlers AB
Can any of the company-specific risk be diversified away by investing in both Kambi Group and Rejlers 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 Rejlers 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 Rejlers AB, you can compare the effects of market volatilities on Kambi Group and Rejlers 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 Rejlers AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kambi Group and Rejlers AB.
Diversification Opportunities for Kambi Group and Rejlers AB
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Kambi and Rejlers is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Kambi Group PLC and Rejlers AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rejlers 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 Rejlers AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rejlers AB has no effect on the direction of Kambi Group i.e., Kambi Group and Rejlers AB go up and down completely randomly.
Pair Corralation between Kambi Group and Rejlers AB
Assuming the 90 days trading horizon Kambi Group PLC is expected to generate 1.49 times more return on investment than Rejlers AB. However, Kambi Group is 1.49 times more volatile than Rejlers AB. It trades about 0.02 of its potential returns per unit of risk. Rejlers AB is currently generating about -0.04 per unit of risk. If you would invest 10,170 in Kambi Group PLC on August 29, 2024 and sell it today you would earn a total of 310.00 from holding Kambi Group PLC or generate 3.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kambi Group PLC vs. Rejlers AB
Performance |
| Timeline |
| Kambi Group PLC |
| Rejlers AB |
Kambi Group and Rejlers AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kambi Group and Rejlers AB
The main advantage of trading using opposite Kambi Group and Rejlers AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kambi Group position performs unexpectedly, Rejlers 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 Rejlers AB will offset losses from the drop in Rejlers AB's long position.| Kambi Group vs. Betsson AB | Kambi Group vs. Evolution AB | Kambi Group vs. Embracer Group AB | Kambi Group vs. Catena Media plc |
| Rejlers AB vs. Proact IT Group | Rejlers AB vs. Nederman Holding AB | Rejlers AB vs. Sweco AB | Rejlers AB vs. Rottneros 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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |