Correlation Between Flutter Entertainment and Esports Entertainment
Can any of the company-specific risk be diversified away by investing in both Flutter Entertainment and Esports 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 Flutter Entertainment and Esports Entertainment 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 Esports Entertainment Group, you can compare the effects of market volatilities on Flutter Entertainment and Esports 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 Flutter Entertainment with a short position of Esports Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flutter Entertainment and Esports Entertainment.
Diversification Opportunities for Flutter Entertainment and Esports Entertainment
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Flutter and Esports is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Flutter Entertainment PLC and Esports Entertainment Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Esports Entertainment 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 Esports Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Esports Entertainment has no effect on the direction of Flutter Entertainment i.e., Flutter Entertainment and Esports Entertainment go up and down completely randomly.
Pair Corralation between Flutter Entertainment and Esports Entertainment
If you would invest 54.00 in Esports Entertainment Group on September 25, 2024 and sell it today you would earn a total of 0.00 from holding Esports Entertainment Group or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Flutter Entertainment PLC vs. Esports Entertainment Group
Performance |
Timeline |
Flutter Entertainment PLC |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Esports Entertainment |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Flutter Entertainment and Esports Entertainment Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Flutter Entertainment and Esports Entertainment
The main advantage of trading using opposite Flutter Entertainment and Esports Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Flutter Entertainment position performs unexpectedly, Esports 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 Esports Entertainment will offset losses from the drop in Esports Entertainment's long position.Flutter Entertainment vs. 888 Holdings | Flutter Entertainment vs. Entain Plc | Flutter Entertainment vs. Inspired Entertainment | Flutter Entertainment vs. Rush Street Interactive |
Esports Entertainment vs. Rush Street Interactive | Esports Entertainment vs. Everi Holdings | Esports Entertainment vs. Inspired Entertainment | Esports Entertainment vs. PointsBet Holdings Limited |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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