Correlation Between Kambi Group and PointsBet Holdings
Can any of the company-specific risk be diversified away by investing in both Kambi Group and PointsBet Holdings 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 PointsBet Holdings 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 PointsBet Holdings Limited, you can compare the effects of market volatilities on Kambi Group and PointsBet Holdings 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 PointsBet Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kambi Group and PointsBet Holdings.
Diversification Opportunities for Kambi Group and PointsBet Holdings
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Kambi and PointsBet is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Kambi Group plc and PointsBet Holdings Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PointsBet Holdings 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 PointsBet Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PointsBet Holdings has no effect on the direction of Kambi Group i.e., Kambi Group and PointsBet Holdings go up and down completely randomly.
Pair Corralation between Kambi Group and PointsBet Holdings
Assuming the 90 days horizon Kambi Group plc is expected to generate 0.61 times more return on investment than PointsBet Holdings. However, Kambi Group plc is 1.63 times less risky than PointsBet Holdings. It trades about 0.24 of its potential returns per unit of risk. PointsBet Holdings Limited is currently generating about 0.0 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 | 68.18% |
| Values | Daily Returns |
Kambi Group plc vs. PointsBet Holdings Limited
Performance |
| Timeline |
| Kambi Group plc |
| PointsBet Holdings |
Kambi Group and PointsBet Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kambi Group and PointsBet Holdings
The main advantage of trading using opposite Kambi Group and PointsBet Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kambi Group position performs unexpectedly, PointsBet Holdings 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 PointsBet Holdings will offset losses from the drop in PointsBet Holdings' long position.| Kambi Group vs. Light Wonder | Kambi Group vs. Everi Holdings | Kambi Group vs. PlayAGS | Kambi Group vs. Accel Entertainment |
| PointsBet Holdings vs. Entain DRC PLC | PointsBet Holdings vs. 888 Holdings | PointsBet Holdings vs. Intema Solutions | PointsBet Holdings 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |