Correlation Between PointsBet Holdings and Kambi Group
Can any of the company-specific risk be diversified away by investing in both PointsBet Holdings 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 PointsBet Holdings and Kambi Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PointsBet Holdings Limited and Kambi Group plc, you can compare the effects of market volatilities on PointsBet Holdings 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 PointsBet Holdings with a short position of Kambi Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of PointsBet Holdings and Kambi Group.
Diversification Opportunities for PointsBet Holdings and Kambi Group
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between PointsBet and Kambi is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding PointsBet Holdings Limited 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 PointsBet Holdings 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 PointsBet Holdings Limited 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 PointsBet Holdings i.e., PointsBet Holdings and Kambi Group go up and down completely randomly.
Pair Corralation between PointsBet Holdings and Kambi Group
If you would invest 55.00 in PointsBet Holdings Limited on September 1, 2024 and sell it today you would earn a total of 7.00 from holding PointsBet Holdings Limited or generate 12.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 66.67% |
| Values | Daily Returns |
PointsBet Holdings Limited vs. Kambi Group plc
Performance |
| Timeline |
| PointsBet Holdings |
| Kambi Group plc |
PointsBet Holdings and Kambi Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PointsBet Holdings and Kambi Group
The main advantage of trading using opposite PointsBet Holdings and Kambi Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PointsBet Holdings 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.| 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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