Correlation Between International Game and Flutter Entertainment
Can any of the company-specific risk be diversified away by investing in both International Game 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 International Game and Flutter Entertainment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between International Game Technology and Flutter Entertainment PLC, you can compare the effects of market volatilities on International Game 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 International Game with a short position of Flutter Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of International Game and Flutter Entertainment.
Diversification Opportunities for International Game and Flutter Entertainment
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between International and Flutter is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding International Game Technology 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 International Game 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 International Game Technology 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 International Game i.e., International Game and Flutter Entertainment go up and down completely randomly.
Pair Corralation between International Game and Flutter Entertainment
Assuming the 90 days horizon International Game Technology is expected to under-perform the Flutter Entertainment. But the stock apears to be less risky and, when comparing its historical volatility, International Game Technology is 1.19 times less risky than Flutter Entertainment. The stock trades about -0.04 of its potential returns per unit of risk. The Flutter Entertainment PLC is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 15,355 in Flutter Entertainment PLC on September 4, 2024 and sell it today you would earn a total of 11,035 from holding Flutter Entertainment PLC or generate 71.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
International Game Technology vs. Flutter Entertainment PLC
Performance |
| Timeline |
| International Game |
| Flutter Entertainment PLC |
International Game and Flutter Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with International Game and Flutter Entertainment
The main advantage of trading using opposite International Game and Flutter Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if International Game 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.| International Game vs. Flutter Entertainment PLC | International Game vs. Evolution AB | International Game vs. Churchill Downs Incorporated | International Game vs. Churchill Downs Incorporated |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |