Correlation Between Playtika Holding and Flutter Entertainment
Can any of the company-specific risk be diversified away by investing in both Playtika Holding 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 Playtika Holding and Flutter Entertainment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Playtika Holding Corp and Flutter Entertainment plc, you can compare the effects of market volatilities on Playtika Holding 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 Playtika Holding with a short position of Flutter Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Playtika Holding and Flutter Entertainment.
Diversification Opportunities for Playtika Holding and Flutter Entertainment
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Playtika and Flutter is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Playtika Holding Corp 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 Playtika Holding 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 Playtika Holding Corp 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 Playtika Holding i.e., Playtika Holding and Flutter Entertainment go up and down completely randomly.
Pair Corralation between Playtika Holding and Flutter Entertainment
Given the investment horizon of 90 days Playtika Holding is expected to generate 2.87 times less return on investment than Flutter Entertainment. But when comparing it to its historical volatility, Playtika Holding Corp is 1.81 times less risky than Flutter Entertainment. It trades about 0.26 of its potential returns per unit of risk. Flutter Entertainment plc is currently generating about 0.41 of returns per unit of risk over similar time horizon. If you would invest 23,116 in Flutter Entertainment plc on September 2, 2024 and sell it today you would earn a total of 4,516 from holding Flutter Entertainment plc or generate 19.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Playtika Holding Corp vs. Flutter Entertainment plc
Performance |
| Timeline |
| Playtika Holding Corp |
| Flutter Entertainment plc |
Playtika Holding and Flutter Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Playtika Holding and Flutter Entertainment
The main advantage of trading using opposite Playtika Holding and Flutter Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Playtika Holding 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.| Playtika Holding vs. Gravity Co | Playtika Holding vs. NetEase | Playtika Holding vs. Snail, Class A | Playtika Holding vs. GameSquare Holdings |
| Flutter Entertainment vs. VHAI | Flutter Entertainment vs. Netflix | Flutter Entertainment vs. Gulfport Energy Operating | Flutter Entertainment vs. Microsoft |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |