Correlation Between Kambi Group and Dixons Carphone
Can any of the company-specific risk be diversified away by investing in both Kambi Group and Dixons Carphone 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 Dixons Carphone 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 Dixons Carphone plc, you can compare the effects of market volatilities on Kambi Group and Dixons Carphone 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 Dixons Carphone. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kambi Group and Dixons Carphone.
Diversification Opportunities for Kambi Group and Dixons Carphone
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Kambi and Dixons is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Kambi Group plc and Dixons Carphone plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dixons Carphone plc 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 Dixons Carphone. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dixons Carphone plc has no effect on the direction of Kambi Group i.e., Kambi Group and Dixons Carphone go up and down completely randomly.
Pair Corralation between Kambi Group and Dixons Carphone
Assuming the 90 days horizon Kambi Group plc is expected to generate 1.74 times more return on investment than Dixons Carphone. However, Kambi Group is 1.74 times more volatile than Dixons Carphone plc. It trades about 0.24 of its potential returns per unit of risk. Dixons Carphone plc is currently generating about 0.01 per unit of risk. If you would invest 958.00 in Kambi Group plc on November 3, 2024 and sell it today you would earn a total of 162.00 from holding Kambi Group plc or generate 16.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Kambi Group plc vs. Dixons Carphone plc
Performance |
| Timeline |
| Kambi Group plc |
| Dixons Carphone plc |
Kambi Group and Dixons Carphone Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kambi Group and Dixons Carphone
The main advantage of trading using opposite Kambi Group and Dixons Carphone positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kambi Group position performs unexpectedly, Dixons Carphone 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 Dixons Carphone will offset losses from the drop in Dixons Carphone's long position.| Kambi Group vs. Light Wonder | Kambi Group vs. Everi Holdings | Kambi Group vs. PlayAGS | Kambi Group vs. Accel Entertainment |
| Dixons Carphone vs. Nasdaq Inc | Dixons Carphone vs. Aldel Financial II | Dixons Carphone vs. Tandem Diabetes Care | Dixons Carphone vs. National Vision Holdings |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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