Correlation Between Kindred Group and Smart Eye
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By analyzing existing cross correlation between Kindred Group plc and Smart Eye AB, you can compare the effects of market volatilities on Kindred Group and Smart Eye 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 Kindred Group with a short position of Smart Eye. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kindred Group and Smart Eye.
Diversification Opportunities for Kindred Group and Smart Eye
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Kindred and Smart is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Kindred Group plc and Smart Eye AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Smart Eye AB and Kindred 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 Kindred Group plc are associated (or correlated) with Smart Eye. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Smart Eye AB has no effect on the direction of Kindred Group i.e., Kindred Group and Smart Eye go up and down completely randomly.
Pair Corralation between Kindred Group and Smart Eye
Assuming the 90 days trading horizon Kindred Group plc is expected to generate 0.03 times more return on investment than Smart Eye. However, Kindred Group plc is 35.7 times less risky than Smart Eye. It trades about 1.16 of its potential returns per unit of risk. Smart Eye AB is currently generating about -0.1 per unit of risk. If you would invest 12,750 in Kindred Group plc on August 29, 2024 and sell it today you would earn a total of 160.00 from holding Kindred Group plc or generate 1.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 52.17% |
| Values | Daily Returns |
Kindred Group plc vs. Smart Eye AB
Performance |
| Timeline |
| Kindred Group plc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Modest
| Smart Eye AB |
Kindred Group and Smart Eye Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kindred Group and Smart Eye
The main advantage of trading using opposite Kindred Group and Smart Eye positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kindred Group position performs unexpectedly, Smart Eye 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 Smart Eye will offset losses from the drop in Smart Eye's long position.| Kindred Group vs. Betsson AB | Kindred Group vs. Evolution AB | Kindred Group vs. Embracer Group AB | Kindred Group vs. Catena Media plc |
| Smart Eye vs. Media and Games | Smart Eye vs. Upsales Technology AB | Smart Eye vs. Fractal Gaming Group | Smart Eye vs. Lundin Mining |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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