Correlation Between Flutter Entertainment and Digilife Technologies
Can any of the company-specific risk be diversified away by investing in both Flutter Entertainment and Digilife Technologies 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 Digilife Technologies 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 Digilife Technologies Limited, you can compare the effects of market volatilities on Flutter Entertainment and Digilife Technologies 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 Digilife Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flutter Entertainment and Digilife Technologies.
Diversification Opportunities for Flutter Entertainment and Digilife Technologies
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Flutter and Digilife is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Flutter Entertainment PLC and Digilife Technologies Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Digilife Technologies 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 Digilife Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Digilife Technologies has no effect on the direction of Flutter Entertainment i.e., Flutter Entertainment and Digilife Technologies go up and down completely randomly.
Pair Corralation between Flutter Entertainment and Digilife Technologies
Assuming the 90 days trading horizon Flutter Entertainment PLC is expected to generate 0.37 times more return on investment than Digilife Technologies. However, Flutter Entertainment PLC is 2.67 times less risky than Digilife Technologies. It trades about 0.04 of its potential returns per unit of risk. Digilife Technologies Limited is currently generating about -0.09 per unit of risk. If you would invest 24,750 in Flutter Entertainment PLC on October 30, 2024 and sell it today you would earn a total of 290.00 from holding Flutter Entertainment PLC or generate 1.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Flutter Entertainment PLC vs. Digilife Technologies Limited
Performance |
| Timeline |
| Flutter Entertainment PLC |
| Digilife Technologies |
Flutter Entertainment and Digilife Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Flutter Entertainment and Digilife Technologies
The main advantage of trading using opposite Flutter Entertainment and Digilife Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Flutter Entertainment position performs unexpectedly, Digilife Technologies 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 Digilife Technologies will offset losses from the drop in Digilife Technologies' long position.| Flutter Entertainment vs. GigaMedia | Flutter Entertainment vs. GAMING FAC SA | Flutter Entertainment vs. Media and Games | Flutter Entertainment vs. PLAYMATES TOYS |
| Digilife Technologies vs. HANOVER INSURANCE | Digilife Technologies vs. Insurance Australia Group | Digilife Technologies vs. The Hanover Insurance | Digilife Technologies vs. Reinsurance Group of |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |