Correlation Between Integrum and Kambi Group

Can any of the company-specific risk be diversified away by investing in both Integrum 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 Integrum and Kambi Group into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Integrum AB Series and Kambi Group PLC, you can compare the effects of market volatilities on Integrum 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 Integrum with a short position of Kambi Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Integrum and Kambi Group.

Diversification Opportunities for Integrum and Kambi Group

0.85

Correlation Coefficient

Integrum  Kambi Group

Very poor diversification

The 3 months correlation between Integrum and Kambi is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Integrum AB Series 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 Integrum 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 Integrum AB Series 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 Integrum i.e., Integrum and Kambi Group go up and down completely randomly.

Pair Corralation between Integrum and Kambi Group

Assuming the 90 days trading horizon Integrum AB Series is expected to under-perform the Kambi Group. In addition to that, Integrum is 1.14 times more volatile than Kambi Group PLC. It trades about -0.25 of its total potential returns per unit of risk. Kambi Group PLC is currently generating about -0.13 per unit of volatility. If you would invest  12,640  in Kambi Group PLC on September 14, 2024 and sell it today you would lose (2,380) from holding Kambi Group PLC or give up 18.83% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	100.0%
Values	Daily Returns

Integrum AB Series  vs.  Kambi Group PLC

Integrum AB Series

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Integrum AB Series has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Stock's technical and fundamental indicators remain somewhat strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Kambi Group PLC

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Kambi Group PLC has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in January 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Integrum and Kambi Group

The main advantage of trading using opposite Integrum and Kambi Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Integrum 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.

The idea behind Integrum AB Series and Kambi Group PLC pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.