Correlation Between Lion One and Flutter Entertainment
Can any of the company-specific risk be diversified away by investing in both Lion One 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 Lion One and Flutter Entertainment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lion One Metals and Flutter Entertainment PLC, you can compare the effects of market volatilities on Lion One 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 Lion One with a short position of Flutter Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lion One and Flutter Entertainment.
Diversification Opportunities for Lion One and Flutter Entertainment
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Lion and Flutter is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Lion One Metals 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 Lion One 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 Lion One Metals 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 Lion One i.e., Lion One and Flutter Entertainment go up and down completely randomly.
Pair Corralation between Lion One and Flutter Entertainment
Assuming the 90 days horizon Lion One Metals is expected to under-perform the Flutter Entertainment. In addition to that, Lion One is 1.54 times more volatile than Flutter Entertainment PLC. It trades about -0.11 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 20,790 in Flutter Entertainment PLC on August 31, 2024 and sell it today you would earn a total of 4,850 from holding Flutter Entertainment PLC or generate 23.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lion One Metals vs. Flutter Entertainment PLC
Performance |
| Timeline |
| Lion One Metals |
| Flutter Entertainment PLC |
Lion One and Flutter Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lion One and Flutter Entertainment
The main advantage of trading using opposite Lion One and Flutter Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lion One 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.| Lion One vs. ZIJIN MINH UNSPADR20 | Lion One vs. Superior Plus Corp | Lion One vs. NMI Holdings | Lion One vs. Origin Agritech |
| Flutter Entertainment vs. Apple Inc | Flutter Entertainment vs. Apple Inc | Flutter Entertainment vs. Apple Inc | Flutter Entertainment vs. Apple Inc |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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