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
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between PointsBet and Kambi is -0.78. 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
Assuming the 90 days horizon PointsBet Holdings is expected to generate 54.39 times less return on investment than Kambi Group. In addition to that, PointsBet Holdings is 1.63 times more volatile than Kambi Group plc. It trades about 0.0 of its total potential returns per unit of risk. Kambi Group plc is currently generating about 0.24 per unit of volatility. 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 |
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 |
| Kambi Group vs. Light Wonder | Kambi Group vs. Everi Holdings | Kambi Group vs. PlayAGS | Kambi Group vs. Accel Entertainment |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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