Correlation Between Kambi Group and Terranet
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By analyzing existing cross correlation between Kambi Group PLC and Terranet AB, you can compare the effects of market volatilities on Kambi Group and Terranet 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 Terranet. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kambi Group and Terranet.
Diversification Opportunities for Kambi Group and Terranet
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Kambi and Terranet is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Kambi Group PLC and Terranet AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Terranet 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 Terranet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Terranet AB has no effect on the direction of Kambi Group i.e., Kambi Group and Terranet go up and down completely randomly.
Pair Corralation between Kambi Group and Terranet
Assuming the 90 days trading horizon Kambi Group PLC is expected to under-perform the Terranet. But the stock apears to be less risky and, when comparing its historical volatility, Kambi Group PLC is 2.63 times less risky than Terranet. The stock trades about -0.04 of its potential returns per unit of risk. The Terranet AB is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 5.64 in Terranet AB on September 2, 2024 and sell it today you would earn a total of 10.36 from holding Terranet AB or generate 183.69% 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. Terranet AB
Performance |
| Timeline |
| Kambi Group PLC |
| Terranet AB |
Kambi Group and Terranet Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kambi Group and Terranet
The main advantage of trading using opposite Kambi Group and Terranet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kambi Group position performs unexpectedly, Terranet 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 Terranet will offset losses from the drop in Terranet'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 |
| Terranet vs. Catena Media plc | Terranet vs. Kambi Group PLC | Terranet vs. Betsson AB | Terranet vs. Invisio Communications 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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