Correlation Between Kambi Group and Sozap Publ

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

Diversification Opportunities for Kambi Group and Sozap Publ

0.4

Correlation Coefficient

Kambi Group  Sozap Publ

Very weak diversification

The 3 months correlation between Kambi and Sozap is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Kambi Group PLC and Sozap Publ AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sozap Publ AB 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 Sozap Publ. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sozap Publ AB has no effect on the direction of Kambi Group i.e., Kambi Group and Sozap Publ go up and down completely randomly.

Pair Corralation between Kambi Group and Sozap Publ

Assuming the 90 days trading horizon Kambi Group is expected to generate 5.68 times less return on investment than Sozap Publ. But when comparing it to its historical volatility, Kambi Group PLC is 6.9 times less risky than Sozap Publ. It trades about 0.08 of its potential returns per unit of risk. Sozap Publ AB is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  54.00  in Sozap Publ AB on April 23, 2025 and sell it today you would lose (6.00) from holding Sozap Publ AB or give up 11.11% of portfolio value over 90 days.

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

Kambi Group PLC  vs.  Sozap Publ AB

Kambi Group PLC

Risk-Adjusted Performance

Modest

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.

Sozap Publ AB

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Sozap Publ AB are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Sozap Publ unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Kambi Group and Sozap Publ

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

The idea behind Kambi Group PLC and Sozap Publ 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.