Correlation Between Greek Organization and Flutter Entertainment

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

By analyzing existing cross correlation between Greek Organization of and Flutter Entertainment PLC, you can compare the effects of market volatilities on Greek Organization 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 Greek Organization with a short position of Flutter Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Greek Organization and Flutter Entertainment.

Diversification Opportunities for Greek Organization and Flutter Entertainment

-0.4

Correlation Coefficient

Greek Organization  Flutter Entertainment

Very good diversification

The 3 months correlation between Greek and Flutter is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Greek Organization of 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 Greek Organization 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 Greek Organization of 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 Greek Organization i.e., Greek Organization and Flutter Entertainment go up and down completely randomly.

Pair Corralation between Greek Organization and Flutter Entertainment

Assuming the 90 days horizon Greek Organization of is expected to generate 0.56 times more return on investment than Flutter Entertainment. However, Greek Organization of is 1.78 times less risky than Flutter Entertainment. It trades about 0.18 of its potential returns per unit of risk. Flutter Entertainment PLC is currently generating about -0.04 per unit of risk. If you would invest  1,531  in Greek Organization of on December 26, 2024 and sell it today you would earn a total of  271.00  from holding Greek Organization of or generate 17.7% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.39%
Values	Daily Returns

Greek Organization of  vs.  Flutter Entertainment PLC

Greek Organization

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Greek Organization of are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, Greek Organization reported solid returns over the last few months and may actually be approaching a breakup point.

Flutter Entertainment PLC

Risk-Adjusted Performance

Very Weak

Over the last 90 days Flutter Entertainment PLC has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest uncertain performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Pair Trading with Greek Organization and Flutter Entertainment

The main advantage of trading using opposite Greek Organization and Flutter Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Greek Organization 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.

The idea behind Greek Organization of and Flutter Entertainment PLC 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.

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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.