Correlation Between Flutter Entertainment and ZOOZ Power
Can any of the company-specific risk be diversified away by investing in both Flutter Entertainment and ZOOZ Power 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 ZOOZ Power 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 ZOOZ Power Ltd, you can compare the effects of market volatilities on Flutter Entertainment and ZOOZ Power 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 ZOOZ Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flutter Entertainment and ZOOZ Power.
Diversification Opportunities for Flutter Entertainment and ZOOZ Power
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Flutter and ZOOZ is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Flutter Entertainment plc and ZOOZ Power Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ZOOZ Power 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 ZOOZ Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ZOOZ Power has no effect on the direction of Flutter Entertainment i.e., Flutter Entertainment and ZOOZ Power go up and down completely randomly.
Pair Corralation between Flutter Entertainment and ZOOZ Power
Given the investment horizon of 90 days Flutter Entertainment is expected to generate 1.12 times less return on investment than ZOOZ Power. But when comparing it to its historical volatility, Flutter Entertainment plc is 1.48 times less risky than ZOOZ Power. It trades about 0.32 of its potential returns per unit of risk. ZOOZ Power Ltd is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 235.00 in ZOOZ Power Ltd on August 24, 2024 and sell it today you would earn a total of 42.00 from holding ZOOZ Power Ltd or generate 17.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Flutter Entertainment plc vs. ZOOZ Power Ltd
Performance |
| Timeline |
| Flutter Entertainment plc |
| ZOOZ Power |
Flutter Entertainment and ZOOZ Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Flutter Entertainment and ZOOZ Power
The main advantage of trading using opposite Flutter Entertainment and ZOOZ Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Flutter Entertainment position performs unexpectedly, ZOOZ Power 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 ZOOZ Power will offset losses from the drop in ZOOZ Power's long position.| Flutter Entertainment vs. DraftKings | Flutter Entertainment vs. Codere Online Luxembourg | Flutter Entertainment vs. Gan | Flutter Entertainment vs. Rush Street Interactive |
| ZOOZ Power vs. ODP Corp | ZOOZ Power vs. Sally Beauty Holdings | ZOOZ Power vs. Savers Value Village, | ZOOZ Power vs. Container Store Group |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |