Correlation Between Nordisk Bergteknik and Kambi Group
Can any of the company-specific risk be diversified away by investing in both Nordisk Bergteknik and Kambi Group 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 Nordisk Bergteknik and Kambi Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nordisk Bergteknik AB and Kambi Group PLC, you can compare the effects of market volatilities on Nordisk Bergteknik and Kambi Group 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 Nordisk Bergteknik with a short position of Kambi Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nordisk Bergteknik and Kambi Group.
Diversification Opportunities for Nordisk Bergteknik and Kambi Group
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Nordisk and Kambi is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Nordisk Bergteknik AB and Kambi Group PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kambi Group PLC and Nordisk Bergteknik 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 Nordisk Bergteknik AB are associated (or correlated) with Kambi Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kambi Group PLC has no effect on the direction of Nordisk Bergteknik i.e., Nordisk Bergteknik and Kambi Group go up and down completely randomly.
Pair Corralation between Nordisk Bergteknik and Kambi Group
Assuming the 90 days trading horizon Nordisk Bergteknik AB is expected to under-perform the Kambi Group. In addition to that, Nordisk Bergteknik is 1.96 times more volatile than Kambi Group PLC. It trades about -0.23 of its total potential returns per unit of risk. Kambi Group PLC is currently generating about -0.07 per unit of volatility. If you would invest 10,720 in Kambi Group PLC on September 12, 2024 and sell it today you would lose (200.00) from holding Kambi Group PLC or give up 1.87% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Nordisk Bergteknik AB vs. Kambi Group PLC
Performance |
| Timeline |
| Nordisk Bergteknik |
| Kambi Group PLC |
Nordisk Bergteknik and Kambi Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nordisk Bergteknik and Kambi Group
The main advantage of trading using opposite Nordisk Bergteknik and Kambi Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nordisk Bergteknik position performs unexpectedly, Kambi Group 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 Kambi Group will offset losses from the drop in Kambi Group's long position.| Nordisk Bergteknik vs. Ctek AB | Nordisk Bergteknik vs. NCAB Group | Nordisk Bergteknik vs. Bufab Holding AB | Nordisk Bergteknik vs. Profoto Holding AB |
| Kambi Group vs. XMReality AB | Kambi Group vs. Enersize Oy | Kambi Group vs. Serstech AB | Kambi Group vs. KABE Group AB |
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.
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