Correlation Between Oncopeptides and Kambi Group
Can any of the company-specific risk be diversified away by investing in both Oncopeptides 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 Oncopeptides and Kambi Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oncopeptides AB and Kambi Group PLC, you can compare the effects of market volatilities on Oncopeptides 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 Oncopeptides with a short position of Kambi Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oncopeptides and Kambi Group.
Diversification Opportunities for Oncopeptides and Kambi Group
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Oncopeptides and Kambi is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Oncopeptides 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 Oncopeptides 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 Oncopeptides 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 Oncopeptides i.e., Oncopeptides and Kambi Group go up and down completely randomly.
Pair Corralation between Oncopeptides and Kambi Group
Assuming the 90 days trading horizon Oncopeptides AB is expected to generate 1.78 times more return on investment than Kambi Group. However, Oncopeptides is 1.78 times more volatile than Kambi Group PLC. It trades about -0.16 of its potential returns per unit of risk. Kambi Group PLC is currently generating about -0.37 per unit of risk. If you would invest 209.00 in Oncopeptides AB on September 1, 2024 and sell it today you would lose (44.00) from holding Oncopeptides AB or give up 21.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oncopeptides AB vs. Kambi Group PLC
Performance |
| Timeline |
| Oncopeptides AB |
| Kambi Group PLC |
Oncopeptides and Kambi Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oncopeptides and Kambi Group
The main advantage of trading using opposite Oncopeptides and Kambi Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oncopeptides 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.| Oncopeptides vs. Hansa Biopharma AB | Oncopeptides vs. BioArctic AB | Oncopeptides vs. Sinch AB | Oncopeptides vs. Cantargia AB |
| Kambi Group vs. Evolution AB | Kambi Group vs. Embracer Group AB | Kambi Group vs. Betsson AB | Kambi Group vs. Catena Media plc |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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