Correlation Between Bank of New York and Flutter Entertainment
Can any of the company-specific risk be diversified away by investing in both Bank of New York 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 Bank of New York and Flutter Entertainment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank of New and Flutter Entertainment plc, you can compare the effects of market volatilities on Bank of New York 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 Bank of New York with a short position of Flutter Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of New York and Flutter Entertainment.
Diversification Opportunities for Bank of New York and Flutter Entertainment
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Bank and Flutter is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Bank of New 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 Bank of New York 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 Bank of New 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 Bank of New York i.e., Bank of New York and Flutter Entertainment go up and down completely randomly.
Pair Corralation between Bank of New York and Flutter Entertainment
Allowing for the 90-day total investment horizon Bank of New is expected to generate 0.59 times more return on investment than Flutter Entertainment. However, Bank of New is 1.71 times less risky than Flutter Entertainment. It trades about 0.16 of its potential returns per unit of risk. Flutter Entertainment plc is currently generating about 0.06 per unit of risk. If you would invest 5,383 in Bank of New on November 3, 2024 and sell it today you would earn a total of 3,210 from holding Bank of New or generate 59.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank of New vs. Flutter Entertainment plc
Performance |
| Timeline |
| Bank of New York |
| Flutter Entertainment plc |
Bank of New York and Flutter Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of New York and Flutter Entertainment
The main advantage of trading using opposite Bank of New York and Flutter Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of New York 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.| Bank of New York vs. Northern Trust | Bank of New York vs. Invesco Plc | Bank of New York vs. Franklin Resources | Bank of New York vs. T Rowe Price |
| Flutter Entertainment vs. Getty Realty | Flutter Entertainment vs. Rami Levi Chain | Flutter Entertainment vs. Albertsons Companies | Flutter Entertainment vs. MYT Netherlands Parent |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |