Correlation Between Kambi Group and Paradox Interactive

Can any of the company-specific risk be diversified away by investing in both Kambi Group and Paradox Interactive 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 Paradox Interactive 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 Paradox Interactive AB, you can compare the effects of market volatilities on Kambi Group and Paradox Interactive 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 Paradox Interactive. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kambi Group and Paradox Interactive.

Diversification Opportunities for Kambi Group and Paradox Interactive

-0.39

Correlation Coefficient

Kambi Group  Paradox Interactive

Very good diversification

The 3 months correlation between Kambi and Paradox is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Kambi Group PLC and Paradox Interactive AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Paradox Interactive 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 Paradox Interactive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Paradox Interactive has no effect on the direction of Kambi Group i.e., Kambi Group and Paradox Interactive go up and down completely randomly.

Pair Corralation between Kambi Group and Paradox Interactive

Assuming the 90 days trading horizon Kambi Group PLC is expected to generate 1.06 times more return on investment than Paradox Interactive. However, Kambi Group is 1.06 times more volatile than Paradox Interactive AB. It trades about 0.08 of its potential returns per unit of risk. Paradox Interactive AB is currently generating about 0.01 per unit of risk. If you would invest  11,800  in Kambi Group PLC on April 23, 2025 and sell it today you would earn a total of  1,090  from holding Kambi Group PLC or generate 9.24% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.36%
Values	Daily Returns

Kambi Group PLC  vs.  Paradox Interactive AB

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 5 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Kambi Group may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Paradox Interactive

Risk-Adjusted Performance

Weak

Over the last 90 days Paradox Interactive AB has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Paradox Interactive is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Kambi Group and Paradox Interactive

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

The idea behind Kambi Group PLC and Paradox Interactive AB 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.