Correlation Between Swedencare Publ and Kambi Group
Can any of the company-specific risk be diversified away by investing in both Swedencare Publ 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 Swedencare Publ and Kambi Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Swedencare publ AB and Kambi Group PLC, you can compare the effects of market volatilities on Swedencare Publ 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 Swedencare Publ with a short position of Kambi Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Swedencare Publ and Kambi Group.
Diversification Opportunities for Swedencare Publ and Kambi Group
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Swedencare and Kambi is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Swedencare publ 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 Swedencare Publ 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 Swedencare publ 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 Swedencare Publ i.e., Swedencare Publ and Kambi Group go up and down completely randomly.
Pair Corralation between Swedencare Publ and Kambi Group
Assuming the 90 days trading horizon Swedencare publ AB is expected to generate 0.32 times more return on investment than Kambi Group. However, Swedencare publ AB is 3.14 times less risky than Kambi Group. It trades about 0.29 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 4,636 in Swedencare publ AB on September 1, 2024 and sell it today you would earn a total of 324.00 from holding Swedencare publ AB or generate 6.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Swedencare publ AB vs. Kambi Group PLC
Performance |
| Timeline |
| Swedencare publ AB |
| Kambi Group PLC |
Swedencare Publ and Kambi Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Swedencare Publ and Kambi Group
The main advantage of trading using opposite Swedencare Publ and Kambi Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Swedencare Publ 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.| Swedencare Publ vs. 24SevenOffice Scandinavia AB | Swedencare Publ vs. Arctic Blue Beverages | Swedencare Publ vs. Invisio Communications AB | Swedencare Publ vs. Havsfrun Investment 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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