Correlation Between Vermilion Energy and Flutter Entertainment
Can any of the company-specific risk be diversified away by investing in both Vermilion Energy 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 Vermilion Energy and Flutter Entertainment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vermilion Energy and Flutter Entertainment plc, you can compare the effects of market volatilities on Vermilion Energy 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 Vermilion Energy with a short position of Flutter Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vermilion Energy and Flutter Entertainment.
Diversification Opportunities for Vermilion Energy and Flutter Entertainment
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Vermilion and Flutter is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Vermilion Energy 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 Vermilion Energy 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 Vermilion Energy 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 Vermilion Energy i.e., Vermilion Energy and Flutter Entertainment go up and down completely randomly.
Pair Corralation between Vermilion Energy and Flutter Entertainment
Considering the 90-day investment horizon Vermilion Energy is expected to generate 66.15 times less return on investment than Flutter Entertainment. In addition to that, Vermilion Energy is 1.34 times more volatile than Flutter Entertainment plc. It trades about 0.0 of its total potential returns per unit of risk. Flutter Entertainment plc is currently generating about 0.22 per unit of volatility. If you would invest 25,101 in Flutter Entertainment plc on September 12, 2024 and sell it today you would earn a total of 2,370 from holding Flutter Entertainment plc or generate 9.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Vermilion Energy vs. Flutter Entertainment plc
Performance |
| Timeline |
| Vermilion Energy |
| Flutter Entertainment plc |
Vermilion Energy and Flutter Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vermilion Energy and Flutter Entertainment
The main advantage of trading using opposite Vermilion Energy and Flutter Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vermilion Energy 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.| Vermilion Energy vs. Baytex Energy Corp | Vermilion Energy vs. Obsidian Energy | Vermilion Energy vs. Canadian Natural Resources | Vermilion Energy vs. Ovintiv |
| Flutter Entertainment vs. Fidus Investment Corp | Flutter Entertainment vs. Eastman Chemical | Flutter Entertainment vs. Mativ Holdings | Flutter Entertainment vs. The Mosaic |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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