Correlation Between Flutter Entertainment and Zegona Communications
Can any of the company-specific risk be diversified away by investing in both Flutter Entertainment and Zegona Communications 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 Flutter Entertainment and Zegona Communications into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Flutter Entertainment PLC and Zegona Communications Plc, you can compare the effects of market volatilities on Flutter Entertainment and Zegona Communications 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 Flutter Entertainment with a short position of Zegona Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flutter Entertainment and Zegona Communications.
Diversification Opportunities for Flutter Entertainment and Zegona Communications
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Flutter and Zegona is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Flutter Entertainment PLC and Zegona Communications Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zegona Communications Plc and Flutter Entertainment 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 Flutter Entertainment PLC are associated (or correlated) with Zegona Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zegona Communications Plc has no effect on the direction of Flutter Entertainment i.e., Flutter Entertainment and Zegona Communications go up and down completely randomly.
Pair Corralation between Flutter Entertainment and Zegona Communications
Assuming the 90 days trading horizon Flutter Entertainment is expected to generate 5.51 times less return on investment than Zegona Communications. But when comparing it to its historical volatility, Flutter Entertainment PLC is 7.88 times less risky than Zegona Communications. It trades about 0.07 of its potential returns per unit of risk. Zegona Communications Plc is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 7,950 in Zegona Communications Plc on August 25, 2024 and sell it today you would earn a total of 24,850 from holding Zegona Communications Plc or generate 312.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 92.79% |
| Values | Daily Returns |
Flutter Entertainment PLC vs. Zegona Communications Plc
Performance |
| Timeline |
| Flutter Entertainment PLC |
| Zegona Communications Plc |
Flutter Entertainment and Zegona Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Flutter Entertainment and Zegona Communications
The main advantage of trading using opposite Flutter Entertainment and Zegona Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Flutter Entertainment position performs unexpectedly, Zegona Communications 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 Zegona Communications will offset losses from the drop in Zegona Communications' long position.| Flutter Entertainment vs. Zegona Communications Plc | Flutter Entertainment vs. Fonix Mobile plc | Flutter Entertainment vs. Capital Metals PLC | Flutter Entertainment vs. Air Products Chemicals |
| Zegona Communications vs. SupplyMe Capital PLC | Zegona Communications vs. Premier African Minerals | Zegona Communications vs. SANTANDER UK 8 | Zegona Communications vs. Vodafone Group PLC |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |