Correlation Between Solaris Resources and Kambi Group
Can any of the company-specific risk be diversified away by investing in both Solaris Resources 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 Solaris Resources and Kambi Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Solaris Resources and Kambi Group plc, you can compare the effects of market volatilities on Solaris Resources 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 Solaris Resources with a short position of Kambi Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Solaris Resources and Kambi Group.
Diversification Opportunities for Solaris Resources and Kambi Group
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Solaris and Kambi is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Solaris Resources 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 Solaris Resources 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 Solaris Resources 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 Solaris Resources i.e., Solaris Resources and Kambi Group go up and down completely randomly.
Pair Corralation between Solaris Resources and Kambi Group
Given the investment horizon of 90 days Solaris Resources is expected to generate 1.32 times more return on investment than Kambi Group. However, Solaris Resources is 1.32 times more volatile than Kambi Group plc. It trades about 0.0 of its potential returns per unit of risk. Kambi Group plc is currently generating about -0.03 per unit of risk. If you would invest 463.00 in Solaris Resources on November 2, 2024 and sell it today you would lose (137.00) from holding Solaris Resources or give up 29.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Solaris Resources vs. Kambi Group plc
Performance |
| Timeline |
| Solaris Resources |
| Kambi Group plc |
Solaris Resources and Kambi Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Solaris Resources and Kambi Group
The main advantage of trading using opposite Solaris Resources and Kambi Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Solaris Resources 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.| Solaris Resources vs. Nordic Semiconductor ASA | Solaris Resources vs. Allient | Solaris Resources vs. Skyworks Solutions | Solaris Resources vs. Arm Holdings plc |
| 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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