Correlation Between Fluent and Endeavor Group

Can any of the company-specific risk be diversified away by investing in both Fluent and Endeavor Group 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 Fluent and Endeavor Group into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Fluent Inc and Endeavor Group Holdings, you can compare the effects of market volatilities on Fluent and Endeavor Group 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 Fluent with a short position of Endeavor Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fluent and Endeavor Group.

Diversification Opportunities for Fluent and Endeavor Group

-0.67

Correlation Coefficient

Fluent  Endeavor Group

Excellent diversification

The 3 months correlation between Fluent and Endeavor is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Fluent Inc and Endeavor Group Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Endeavor Group Holdings and Fluent 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 Fluent Inc are associated (or correlated) with Endeavor Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Endeavor Group Holdings has no effect on the direction of Fluent i.e., Fluent and Endeavor Group go up and down completely randomly.

Pair Corralation between Fluent and Endeavor Group

Given the investment horizon of 90 days Fluent Inc is expected to under-perform the Endeavor Group. In addition to that, Fluent is 7.94 times more volatile than Endeavor Group Holdings. It trades about -0.04 of its total potential returns per unit of risk. Endeavor Group Holdings is currently generating about 0.71 per unit of volatility. If you would invest  2,949  in Endeavor Group Holdings on September 22, 2024 and sell it today you would earn a total of  172.00  from holding Endeavor Group Holdings or generate 5.83% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Fluent Inc  vs.  Endeavor Group Holdings

Fluent Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Fluent Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in January 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Endeavor Group Holdings

Risk-Adjusted Performance

25 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Endeavor Group Holdings are ranked lower than 25 (%) of all global equities and portfolios over the last 90 days. Even with relatively abnormal fundamental indicators, Endeavor Group may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Fluent and Endeavor Group

The main advantage of trading using opposite Fluent and Endeavor Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fluent position performs unexpectedly, Endeavor Group 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 Endeavor Group will offset losses from the drop in Endeavor Group's long position.

The idea behind Fluent Inc and Endeavor Group Holdings pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.