Correlation Between Energy Focu and Flutter Entertainment
Can any of the company-specific risk be diversified away by investing in both Energy Focu 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 Energy Focu and Flutter Entertainment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Energy Focu and Flutter Entertainment plc, you can compare the effects of market volatilities on Energy Focu 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 Energy Focu with a short position of Flutter Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Energy Focu and Flutter Entertainment.
Diversification Opportunities for Energy Focu and Flutter Entertainment
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Energy and Flutter is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Energy Focu 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 Energy Focu 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 Energy Focu 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 Energy Focu i.e., Energy Focu and Flutter Entertainment go up and down completely randomly.
Pair Corralation between Energy Focu and Flutter Entertainment
Given the investment horizon of 90 days Energy Focu is expected to generate 2.98 times less return on investment than Flutter Entertainment. In addition to that, Energy Focu is 2.73 times more volatile than Flutter Entertainment plc. It trades about 0.05 of its total potential returns per unit of risk. Flutter Entertainment plc is currently generating about 0.43 per unit of volatility. If you would invest 22,600 in Flutter Entertainment plc on August 27, 2024 and sell it today you would earn a total of 4,952 from holding Flutter Entertainment plc or generate 21.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Energy Focu vs. Flutter Entertainment plc
Performance |
| Timeline |
| Energy Focu |
| Flutter Entertainment plc |
Energy Focu and Flutter Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Energy Focu and Flutter Entertainment
The main advantage of trading using opposite Energy Focu and Flutter Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Energy Focu 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.| Energy Focu vs. Petros Pharmaceuticals | Energy Focu vs. Pioneer Power Solutions | Energy Focu vs. Ensysce Biosciences |
| Flutter Entertainment vs. GMS Inc | Flutter Entertainment vs. Consol Energy | Flutter Entertainment vs. Cedar Realty Trust | Flutter Entertainment vs. SEI Investments |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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