Correlation Between Kambi Group and Entain DRC
Can any of the company-specific risk be diversified away by investing in both Kambi Group and Entain DRC 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 Entain DRC 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 Entain DRC PLC, you can compare the effects of market volatilities on Kambi Group and Entain DRC 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 Entain DRC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kambi Group and Entain DRC.
Diversification Opportunities for Kambi Group and Entain DRC
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kambi and Entain is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Kambi Group plc and Entain DRC PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Entain DRC 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 Entain DRC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Entain DRC PLC has no effect on the direction of Kambi Group i.e., Kambi Group and Entain DRC go up and down completely randomly.
Pair Corralation between Kambi Group and Entain DRC
Assuming the 90 days horizon Kambi Group plc is expected to generate 1.02 times more return on investment than Entain DRC. However, Kambi Group is 1.02 times more volatile than Entain DRC PLC. It trades about 0.24 of its potential returns per unit of risk. Entain DRC PLC is currently generating about 0.05 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 Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Kambi Group plc vs. Entain DRC PLC
Performance |
| Timeline |
| Kambi Group plc |
| Entain DRC PLC |
Kambi Group and Entain DRC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kambi Group and Entain DRC
The main advantage of trading using opposite Kambi Group and Entain DRC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kambi Group position performs unexpectedly, Entain DRC 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 Entain DRC will offset losses from the drop in Entain DRC's long position.| Kambi Group vs. Light Wonder | Kambi Group vs. Everi Holdings | Kambi Group vs. PlayAGS | Kambi Group vs. Accel Entertainment |
| Entain DRC vs. 888 Holdings | Entain DRC vs. Intema Solutions | Entain DRC vs. PointsBet Holdings Limited | Entain DRC vs. Royal Wins |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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