Correlation Between Kambi Group and Intema Solutions
Can any of the company-specific risk be diversified away by investing in both Kambi Group and Intema Solutions 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 Intema Solutions 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 Intema Solutions, you can compare the effects of market volatilities on Kambi Group and Intema Solutions 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 Intema Solutions. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kambi Group and Intema Solutions.
Diversification Opportunities for Kambi Group and Intema Solutions
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Kambi and Intema is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Kambi Group plc and Intema Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intema Solutions 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 Intema Solutions. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intema Solutions has no effect on the direction of Kambi Group i.e., Kambi Group and Intema Solutions go up and down completely randomly.
Pair Corralation between Kambi Group and Intema Solutions
Assuming the 90 days horizon Kambi Group plc is expected to under-perform the Intema Solutions. But the pink sheet apears to be less risky and, when comparing its historical volatility, Kambi Group plc is 16.57 times less risky than Intema Solutions. The pink sheet trades about -0.04 of its potential returns per unit of risk. The Intema Solutions is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 3.30 in Intema Solutions on August 31, 2024 and sell it today you would lose (3.08) from holding Intema Solutions or give up 93.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kambi Group plc vs. Intema Solutions
Performance |
| Timeline |
| Kambi Group plc |
| Intema Solutions |
Kambi Group and Intema Solutions Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kambi Group and Intema Solutions
The main advantage of trading using opposite Kambi Group and Intema Solutions positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kambi Group position performs unexpectedly, Intema Solutions 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 Intema Solutions will offset losses from the drop in Intema Solutions' long position.The idea behind Kambi Group plc and Intema Solutions pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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