Correlation Between Kambi Group and Scout Gaming
Can any of the company-specific risk be diversified away by investing in both Kambi Group and Scout Gaming 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 Scout Gaming 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 Scout Gaming Group, you can compare the effects of market volatilities on Kambi Group and Scout Gaming 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 Scout Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kambi Group and Scout Gaming.
Diversification Opportunities for Kambi Group and Scout Gaming
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Kambi and Scout is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Kambi Group PLC and Scout Gaming Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Scout Gaming Group 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 Scout Gaming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Scout Gaming Group has no effect on the direction of Kambi Group i.e., Kambi Group and Scout Gaming go up and down completely randomly.
Pair Corralation between Kambi Group and Scout Gaming
Assuming the 90 days trading horizon Kambi Group PLC is expected to under-perform the Scout Gaming. But the stock apears to be less risky and, when comparing its historical volatility, Kambi Group PLC is 1.72 times less risky than Scout Gaming. The stock trades about -0.03 of its potential returns per unit of risk. The Scout Gaming Group is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 35.00 in Scout Gaming Group on September 3, 2024 and sell it today you would lose (8.00) from holding Scout Gaming Group or give up 22.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kambi Group PLC vs. Scout Gaming Group
Performance |
| Timeline |
| Kambi Group PLC |
| Scout Gaming Group |
Kambi Group and Scout Gaming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kambi Group and Scout Gaming
The main advantage of trading using opposite Kambi Group and Scout Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kambi Group position performs unexpectedly, Scout Gaming 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 Scout Gaming will offset losses from the drop in Scout Gaming'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 |
| Scout Gaming vs. Idogen AB | Scout Gaming vs. Clean Motion AB | Scout Gaming vs. Arion banki hf | Scout Gaming vs. KABE Group 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 Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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