Correlation Between Evolent Health and Flutter Entertainment
Can any of the company-specific risk be diversified away by investing in both Evolent Health 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 Evolent Health and Flutter Entertainment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Evolent Health and Flutter Entertainment PLC, you can compare the effects of market volatilities on Evolent Health 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 Evolent Health with a short position of Flutter Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Evolent Health and Flutter Entertainment.
Diversification Opportunities for Evolent Health and Flutter Entertainment
-0.93 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Evolent and Flutter is -0.93. Overlapping area represents the amount of risk that can be diversified away by holding Evolent Health 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 Evolent Health 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 Evolent Health 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 Evolent Health i.e., Evolent Health and Flutter Entertainment go up and down completely randomly.
Pair Corralation between Evolent Health and Flutter Entertainment
Assuming the 90 days horizon Evolent Health is expected to under-perform the Flutter Entertainment. In addition to that, Evolent Health is 3.06 times more volatile than Flutter Entertainment PLC. It trades about -0.07 of its total potential returns per unit of risk. Flutter Entertainment PLC is currently generating about -0.16 per unit of volatility. If you would invest 25,840 in Flutter Entertainment PLC on October 20, 2024 and sell it today you would lose (1,080) from holding Flutter Entertainment PLC or give up 4.18% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Evolent Health vs. Flutter Entertainment PLC
Performance |
| Timeline |
| Evolent Health |
| Flutter Entertainment PLC |
Evolent Health and Flutter Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Evolent Health and Flutter Entertainment
The main advantage of trading using opposite Evolent Health and Flutter Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Evolent Health 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.| Evolent Health vs. FAST RETAIL ADR | Evolent Health vs. Tradeweb Markets | Evolent Health vs. COPLAND ROAD CAPITAL | Evolent Health vs. FLOW TRADERS LTD |
| Flutter Entertainment vs. The Hanover Insurance | Flutter Entertainment vs. Summit Materials | Flutter Entertainment vs. Goosehead Insurance | Flutter Entertainment vs. Vulcan Materials |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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