Correlation Between Flutter Entertainment and Light Wonder
Can any of the company-specific risk be diversified away by investing in both Flutter Entertainment and Light Wonder 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 Light Wonder 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 Light Wonder, you can compare the effects of market volatilities on Flutter Entertainment and Light Wonder 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 Light Wonder. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flutter Entertainment and Light Wonder.
Diversification Opportunities for Flutter Entertainment and Light Wonder
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Flutter and Light is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Flutter Entertainment PLC and Light Wonder in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Light Wonder 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 Light Wonder. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Light Wonder has no effect on the direction of Flutter Entertainment i.e., Flutter Entertainment and Light Wonder go up and down completely randomly.
Pair Corralation between Flutter Entertainment and Light Wonder
If you would invest 9,569 in Light Wonder on August 28, 2024 and sell it today you would earn a total of 276.00 from holding Light Wonder or generate 2.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Flutter Entertainment PLC vs. Light Wonder
Performance |
| Timeline |
| Flutter Entertainment PLC |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Light Wonder |
Flutter Entertainment and Light Wonder Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Flutter Entertainment and Light Wonder
The main advantage of trading using opposite Flutter Entertainment and Light Wonder positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Flutter Entertainment position performs unexpectedly, Light Wonder 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 Light Wonder will offset losses from the drop in Light Wonder's long position.| Flutter Entertainment vs. 888 Holdings | Flutter Entertainment vs. Entain Plc | Flutter Entertainment vs. Inspired Entertainment | Flutter Entertainment vs. Rush Street Interactive |
| Light Wonder vs. Codere Online Corp | Light Wonder vs. Inspired Entertainment | Light Wonder vs. International Game Technology | Light Wonder vs. Accel Entertainment |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |