Correlation Between Tangiamo Touch and Kambi Group
Can any of the company-specific risk be diversified away by investing in both Tangiamo Touch 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 Tangiamo Touch and Kambi Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tangiamo Touch Technology and Kambi Group PLC, you can compare the effects of market volatilities on Tangiamo Touch 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 Tangiamo Touch with a short position of Kambi Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tangiamo Touch and Kambi Group.
Diversification Opportunities for Tangiamo Touch and Kambi Group
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Tangiamo and Kambi is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Tangiamo Touch Technology 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 Tangiamo Touch 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 Tangiamo Touch Technology 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 Tangiamo Touch i.e., Tangiamo Touch and Kambi Group go up and down completely randomly.
Pair Corralation between Tangiamo Touch and Kambi Group
Assuming the 90 days trading horizon Tangiamo Touch Technology is expected to under-perform the Kambi Group. In addition to that, Tangiamo Touch is 3.41 times more volatile than Kambi Group PLC. It trades about -0.11 of its total potential returns per unit of risk. Kambi Group PLC is currently generating about -0.03 per unit of volatility. If you would invest 13,500 in Kambi Group PLC on January 18, 2025 and sell it today you would lose (1,880) from holding Kambi Group PLC or give up 13.93% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tangiamo Touch Technology vs. Kambi Group PLC
Performance |
| Timeline |
| Tangiamo Touch Technology |
| Kambi Group PLC |
Tangiamo Touch and Kambi Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tangiamo Touch and Kambi Group
The main advantage of trading using opposite Tangiamo Touch and Kambi Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tangiamo Touch 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.| Tangiamo Touch vs. XMReality AB | Tangiamo Touch vs. Enersize Oy | Tangiamo Touch vs. Mavshack publ AB | Tangiamo Touch vs. Serstech AB |
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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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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