Correlation Between Kambi Group and Zaptec AS
Can any of the company-specific risk be diversified away by investing in both Kambi Group and Zaptec AS 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 Zaptec AS 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 Zaptec AS, you can compare the effects of market volatilities on Kambi Group and Zaptec AS 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 Zaptec AS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kambi Group and Zaptec AS.
Diversification Opportunities for Kambi Group and Zaptec AS
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Kambi and Zaptec is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Kambi Group PLC and Zaptec AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zaptec AS 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 Zaptec AS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zaptec AS has no effect on the direction of Kambi Group i.e., Kambi Group and Zaptec AS go up and down completely randomly.
Pair Corralation between Kambi Group and Zaptec AS
Assuming the 90 days trading horizon Kambi Group PLC is expected to under-perform the Zaptec AS. But the stock apears to be less risky and, when comparing its historical volatility, Kambi Group PLC is 1.62 times less risky than Zaptec AS. The stock trades about -0.18 of its potential returns per unit of risk. The Zaptec AS is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest 1,107 in Zaptec AS on August 29, 2024 and sell it today you would lose (113.00) from holding Zaptec AS or give up 10.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kambi Group PLC vs. Zaptec AS
Performance |
| Timeline |
| Kambi Group PLC |
| Zaptec AS |
Kambi Group and Zaptec AS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kambi Group and Zaptec AS
The main advantage of trading using opposite Kambi Group and Zaptec AS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kambi Group position performs unexpectedly, Zaptec AS 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 Zaptec AS will offset losses from the drop in Zaptec AS's long position.| Kambi Group vs. Betsson AB | Kambi Group vs. Evolution AB | Kambi Group vs. Embracer Group AB | Kambi Group vs. Catena Media 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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