Correlation Between Xeros Technology and Flutter Entertainment

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

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

Diversification Opportunities for Xeros Technology and Flutter Entertainment

0.42

Correlation Coefficient

Xeros Technology  Flutter Entertainment

Very weak diversification

The 3 months correlation between Xeros and Flutter is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Xeros Technology Group 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 Xeros Technology 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 Xeros Technology Group 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 Xeros Technology i.e., Xeros Technology and Flutter Entertainment go up and down completely randomly.

Pair Corralation between Xeros Technology and Flutter Entertainment

Assuming the 90 days trading horizon Xeros Technology Group is expected to generate 2.46 times more return on investment than Flutter Entertainment. However, Xeros Technology is 2.46 times more volatile than Flutter Entertainment PLC. It trades about 0.14 of its potential returns per unit of risk. Flutter Entertainment PLC is currently generating about 0.3 per unit of risk. If you would invest  110.00  in Xeros Technology Group on April 20, 2025 and sell it today you would earn a total of  40.00  from holding Xeros Technology Group or generate 36.36% return on investment over 90 days.

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

Xeros Technology Group  vs.  Flutter Entertainment PLC

Xeros Technology

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Xeros Technology Group are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady technical and fundamental indicators, Xeros Technology exhibited solid returns over the last few months and may actually be approaching a breakup point.

Flutter Entertainment PLC

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Flutter Entertainment PLC are ranked lower than 23 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Flutter Entertainment unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Xeros Technology and Flutter Entertainment

The main advantage of trading using opposite Xeros Technology and Flutter Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xeros Technology 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 Xeros Technology Group 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.