Correlation Between Flutter Entertainment and Everi Holdings
Can any of the company-specific risk be diversified away by investing in both Flutter Entertainment and Everi Holdings 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 Everi Holdings 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 Everi Holdings, you can compare the effects of market volatilities on Flutter Entertainment and Everi Holdings 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 Everi Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flutter Entertainment and Everi Holdings.
Diversification Opportunities for Flutter Entertainment and Everi Holdings
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Flutter and Everi is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Flutter Entertainment PLC and Everi Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Everi Holdings 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 Everi Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Everi Holdings has no effect on the direction of Flutter Entertainment i.e., Flutter Entertainment and Everi Holdings go up and down completely randomly.
Pair Corralation between Flutter Entertainment and Everi Holdings
Assuming the 90 days horizon Flutter Entertainment PLC is expected to generate 0.71 times more return on investment than Everi Holdings. However, Flutter Entertainment PLC is 1.41 times less risky than Everi Holdings. It trades about 0.12 of its potential returns per unit of risk. Everi Holdings is currently generating about -0.01 per unit of risk. If you would invest 7,697 in Flutter Entertainment PLC on November 2, 2024 and sell it today you would earn a total of 2,115 from holding Flutter Entertainment PLC or generate 27.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 22.67% |
| Values | Daily Returns |
Flutter Entertainment PLC vs. Everi Holdings
Performance |
| Timeline |
| Flutter Entertainment PLC |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Everi Holdings |
Flutter Entertainment and Everi Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Flutter Entertainment and Everi Holdings
The main advantage of trading using opposite Flutter Entertainment and Everi Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Flutter Entertainment position performs unexpectedly, Everi Holdings 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 Everi Holdings will offset losses from the drop in Everi Holdings' long position.| Flutter Entertainment vs. 888 Holdings | Flutter Entertainment vs. Entain Plc | Flutter Entertainment vs. Inspired Entertainment | Flutter Entertainment vs. Rush Street Interactive |
| Everi Holdings vs. Accel Entertainment | Everi Holdings vs. Light Wonder | Everi Holdings vs. Inspired Entertainment | Everi Holdings vs. International Game Technology |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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