Correlation Between Kambi Group and Thunderful Group
Can any of the company-specific risk be diversified away by investing in both Kambi Group and Thunderful Group 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 Thunderful Group 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 Thunderful Group AB, you can compare the effects of market volatilities on Kambi Group and Thunderful Group 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 Thunderful Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kambi Group and Thunderful Group.
Diversification Opportunities for Kambi Group and Thunderful Group
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Kambi and Thunderful is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Kambi Group PLC and Thunderful Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thunderful 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 Thunderful Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thunderful Group has no effect on the direction of Kambi Group i.e., Kambi Group and Thunderful Group go up and down completely randomly.
Pair Corralation between Kambi Group and Thunderful Group
Assuming the 90 days trading horizon Kambi Group PLC is expected to generate 0.62 times more return on investment than Thunderful Group. However, Kambi Group PLC is 1.62 times less risky than Thunderful Group. It trades about -0.29 of its potential returns per unit of risk. Thunderful Group AB is currently generating about -0.21 per unit of risk. If you would invest 13,570 in Kambi Group PLC on August 25, 2024 and sell it today you would lose (2,800) from holding Kambi Group PLC or give up 20.63% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kambi Group PLC vs. Thunderful Group AB
Performance |
| Timeline |
| Kambi Group PLC |
| Thunderful Group |
Kambi Group and Thunderful Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kambi Group and Thunderful Group
The main advantage of trading using opposite Kambi Group and Thunderful Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kambi Group position performs unexpectedly, Thunderful Group 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 Thunderful Group will offset losses from the drop in Thunderful Group's long position.| Kambi Group vs. XMReality AB | Kambi Group vs. Enersize Oy | Kambi Group vs. Mavshack publ AB | Kambi Group vs. Serstech AB |
| Thunderful Group vs. Stillfront Group AB | Thunderful Group vs. Embracer Group AB | Thunderful Group vs. Enad Global 7 | Thunderful Group vs. Kambi Group PLC |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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