Correlation Between Kambi Group and Raketech Group

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

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

Diversification Opportunities for Kambi Group and Raketech Group

0.85

Correlation Coefficient

Kambi Group  Raketech Group

Very poor diversification

The 3 months correlation between Kambi and Raketech is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Kambi Group PLC and Raketech Group Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Raketech Group Holding and Kambi Group 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 Kambi Group PLC are associated (or correlated) with Raketech Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Raketech Group Holding has no effect on the direction of Kambi Group i.e., Kambi Group and Raketech Group go up and down completely randomly.

Pair Corralation between Kambi Group and Raketech Group

Assuming the 90 days trading horizon Kambi Group PLC is expected to generate 0.51 times more return on investment than Raketech Group. However, Kambi Group PLC is 1.94 times less risky than Raketech Group. It trades about -0.13 of its potential returns per unit of risk. Raketech Group Holding is currently generating about -0.14 per unit of risk. If you would invest  12,900  in Kambi Group PLC on September 12, 2024 and sell it today you would lose (2,380) from holding Kambi Group PLC or give up 18.45% of portfolio value over 90 days.

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

Kambi Group PLC  vs.  Raketech Group Holding

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 uncertain 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.

Raketech Group Holding

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Raketech Group Holding has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain 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 Kambi Group and Raketech Group

The main advantage of trading using opposite Kambi Group and Raketech Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kambi Group position performs unexpectedly, Raketech 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 Raketech Group will offset losses from the drop in Raketech Group's long position.

The idea behind Kambi Group PLC and Raketech Group Holding 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.