Correlation Between Tat Techno and Kambi Group
Can any of the company-specific risk be diversified away by investing in both Tat Techno 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 Tat Techno and Kambi Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tat Techno and Kambi Group plc, you can compare the effects of market volatilities on Tat Techno 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 Tat Techno with a short position of Kambi Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tat Techno and Kambi Group.
Diversification Opportunities for Tat Techno and Kambi Group
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Tat and Kambi is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Tat Techno 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 Tat Techno 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 Tat Techno 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 Tat Techno i.e., Tat Techno and Kambi Group go up and down completely randomly.
Pair Corralation between Tat Techno and Kambi Group
Given the investment horizon of 90 days Tat Techno is expected to generate 1.03 times more return on investment than Kambi Group. However, Tat Techno is 1.03 times more volatile than Kambi Group plc. It trades about 0.13 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 597.00 in Tat Techno on November 2, 2024 and sell it today you would earn a total of 2,496 from holding Tat Techno or generate 418.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tat Techno vs. Kambi Group plc
Performance |
| Timeline |
| Tat Techno |
| Kambi Group plc |
Tat Techno and Kambi Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tat Techno and Kambi Group
The main advantage of trading using opposite Tat Techno and Kambi Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tat Techno 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.| Tat Techno vs. Innovative Solutions and | Tat Techno vs. CPI Aerostructures | Tat Techno vs. Air Industries Group | Tat Techno vs. Ballistic Recovery Systems |
| 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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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