Correlation Between Kambi Group and Transtema Group
Can any of the company-specific risk be diversified away by investing in both Kambi Group and Transtema 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 Transtema 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 Transtema Group AB, you can compare the effects of market volatilities on Kambi Group and Transtema 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 Transtema Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kambi Group and Transtema Group.
Diversification Opportunities for Kambi Group and Transtema Group
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Kambi and Transtema is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Kambi Group PLC and Transtema Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Transtema Group 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 Transtema Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Transtema Group AB has no effect on the direction of Kambi Group i.e., Kambi Group and Transtema Group go up and down completely randomly.
Pair Corralation between Kambi Group and Transtema Group
If you would invest (100.00) in Transtema Group AB on September 5, 2024 and sell it today you would earn a total of 100.00 from holding Transtema Group AB or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Kambi Group PLC vs. Transtema Group AB
Performance |
| Timeline |
| Kambi Group PLC |
| Transtema Group AB |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Kambi Group and Transtema Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kambi Group and Transtema Group
The main advantage of trading using opposite Kambi Group and Transtema Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kambi Group position performs unexpectedly, Transtema 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 Transtema Group will offset losses from the drop in Transtema Group's long position.The idea behind Kambi Group PLC and Transtema Group AB pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Transtema Group vs. Hexatronic Group AB | Transtema Group vs. Systemair AB | Transtema Group vs. Resurs Holding AB | Transtema Group vs. Prevas 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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