Correlation Between Kambi Group and XMReality
Can any of the company-specific risk be diversified away by investing in both Kambi Group and XMReality 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 XMReality 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 XMReality AB, you can compare the effects of market volatilities on Kambi Group and XMReality 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 XMReality. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kambi Group and XMReality.
Diversification Opportunities for Kambi Group and XMReality
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kambi and XMReality is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Kambi Group PLC and XMReality AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XMReality 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 XMReality. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XMReality AB has no effect on the direction of Kambi Group i.e., Kambi Group and XMReality go up and down completely randomly.
Pair Corralation between Kambi Group and XMReality
Assuming the 90 days trading horizon Kambi Group PLC is expected to generate 0.25 times more return on investment than XMReality. However, Kambi Group PLC is 3.96 times less risky than XMReality. It trades about -0.09 of its potential returns per unit of risk. XMReality AB is currently generating about -0.05 per unit of risk. If you would invest 10,650 in Kambi Group PLC on September 13, 2024 and sell it today you would lose (250.00) from holding Kambi Group PLC or give up 2.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kambi Group PLC vs. XMReality AB
Performance |
| Timeline |
| Kambi Group PLC |
| XMReality AB |
Kambi Group and XMReality Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kambi Group and XMReality
The main advantage of trading using opposite Kambi Group and XMReality positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kambi Group position performs unexpectedly, XMReality 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 XMReality will offset losses from the drop in XMReality'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 |
| XMReality vs. Tangiamo Touch Technology | XMReality vs. Zaplox AB | XMReality vs. Alligator Bioscience AB | XMReality vs. Garo 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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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