Correlation Between Apollo Investment and Flutter Entertainment
Can any of the company-specific risk be diversified away by investing in both Apollo Investment 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 Apollo Investment and Flutter Entertainment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apollo Investment Corp and Flutter Entertainment PLC, you can compare the effects of market volatilities on Apollo Investment 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 Apollo Investment with a short position of Flutter Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apollo Investment and Flutter Entertainment.
Diversification Opportunities for Apollo Investment and Flutter Entertainment
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Apollo and Flutter is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Apollo Investment Corp 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 Apollo Investment 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 Apollo Investment Corp 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 Apollo Investment i.e., Apollo Investment and Flutter Entertainment go up and down completely randomly.
Pair Corralation between Apollo Investment and Flutter Entertainment
Assuming the 90 days trading horizon Apollo Investment is expected to generate 2.65 times less return on investment than Flutter Entertainment. But when comparing it to its historical volatility, Apollo Investment Corp is 2.01 times less risky than Flutter Entertainment. It trades about 0.07 of its potential returns per unit of risk. Flutter Entertainment PLC is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 14,235 in Flutter Entertainment PLC on December 3, 2024 and sell it today you would earn a total of 12,335 from holding Flutter Entertainment PLC or generate 86.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.7% |
| Values | Daily Returns |
Apollo Investment Corp vs. Flutter Entertainment PLC
Performance |
| Timeline |
| Apollo Investment Corp |
| Flutter Entertainment PLC |
Apollo Investment and Flutter Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apollo Investment and Flutter Entertainment
The main advantage of trading using opposite Apollo Investment and Flutter Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apollo Investment 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.| Apollo Investment vs. AIR CHINA LTD | Apollo Investment vs. DELTA AIR LINES | Apollo Investment vs. FARO TECHNOLOGIES | Apollo Investment vs. LAir Liquide SA |
| Flutter Entertainment vs. SILICON LABORATOR | Flutter Entertainment vs. Soken Chemical Engineering | Flutter Entertainment vs. Methode Electronics | Flutter Entertainment vs. Renesas Electronics |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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