Correlation Between Gruppo MutuiOnline and Flutter Entertainment
Can any of the company-specific risk be diversified away by investing in both Gruppo MutuiOnline and Flutter Entertainment 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 Gruppo MutuiOnline and Flutter Entertainment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gruppo MutuiOnline SpA and Flutter Entertainment PLC, you can compare the effects of market volatilities on Gruppo MutuiOnline and Flutter Entertainment 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 Gruppo MutuiOnline with a short position of Flutter Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gruppo MutuiOnline and Flutter Entertainment.
Diversification Opportunities for Gruppo MutuiOnline and Flutter Entertainment
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Gruppo and Flutter is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Gruppo MutuiOnline SpA and Flutter Entertainment PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Flutter Entertainment PLC and Gruppo MutuiOnline 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 Gruppo MutuiOnline SpA are associated (or correlated) with Flutter Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Flutter Entertainment PLC has no effect on the direction of Gruppo MutuiOnline i.e., Gruppo MutuiOnline and Flutter Entertainment go up and down completely randomly.
Pair Corralation between Gruppo MutuiOnline and Flutter Entertainment
Assuming the 90 days trading horizon Gruppo MutuiOnline SpA is expected to under-perform the Flutter Entertainment. In addition to that, Gruppo MutuiOnline is 1.15 times more volatile than Flutter Entertainment PLC. It trades about -0.56 of its total potential returns per unit of risk. Flutter Entertainment PLC is currently generating about -0.05 per unit of volatility. If you would invest 2,156,000 in Flutter Entertainment PLC on October 19, 2024 and sell it today you would lose (39,000) from holding Flutter Entertainment PLC or give up 1.81% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 55.0% |
| Values | Daily Returns |
Gruppo MutuiOnline SpA vs. Flutter Entertainment PLC
Performance |
| Timeline |
| Gruppo MutuiOnline SpA |
| Flutter Entertainment PLC |
Gruppo MutuiOnline and Flutter Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gruppo MutuiOnline and Flutter Entertainment
The main advantage of trading using opposite Gruppo MutuiOnline and Flutter Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gruppo MutuiOnline position performs unexpectedly, Flutter Entertainment 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 Flutter Entertainment will offset losses from the drop in Flutter Entertainment's long position.| Gruppo MutuiOnline vs. Zoom Video Communications | Gruppo MutuiOnline vs. Finnair Oyj | Gruppo MutuiOnline vs. Telecom Italia SpA | Gruppo MutuiOnline vs. Amedeo Air Four |
| Flutter Entertainment vs. Monks Investment Trust | Flutter Entertainment vs. Seraphim Space Investment | Flutter Entertainment vs. Wyndham Hotels Resorts | Flutter Entertainment vs. Gruppo MutuiOnline SpA |
Check out your portfolio center.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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |