Correlation Between Flexion Mobile and Kambi Group

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

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

Diversification Opportunities for Flexion Mobile and Kambi Group

0.39

Correlation Coefficient

Flexion Mobile  Kambi Group

Weak diversification

The 3 months correlation between Flexion and Kambi is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Flexion Mobile PLC 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 Flexion Mobile 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 Flexion Mobile PLC 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 Flexion Mobile i.e., Flexion Mobile and Kambi Group go up and down completely randomly.

Pair Corralation between Flexion Mobile and Kambi Group

Assuming the 90 days trading horizon Flexion Mobile PLC is expected to generate 1.82 times more return on investment than Kambi Group. However, Flexion Mobile is 1.82 times more volatile than Kambi Group PLC. It trades about 0.08 of its potential returns per unit of risk. Kambi Group PLC is currently generating about 0.1 per unit of risk. If you would invest  546.00  in Flexion Mobile PLC on April 24, 2025 and sell it today you would earn a total of  92.00  from holding Flexion Mobile PLC or generate 16.85% return on investment over 90 days.

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

Flexion Mobile PLC  vs.  Kambi Group PLC

Flexion Mobile PLC

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Flexion Mobile PLC are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Flexion Mobile unveiled solid returns over the last few months and may actually be approaching a breakup point.

Kambi Group PLC

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Kambi Group PLC are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Kambi Group unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Flexion Mobile and Kambi Group

The main advantage of trading using opposite Flexion Mobile and Kambi Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Flexion Mobile 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 Flexion Mobile PLC 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.