Correlation Between FARM 51 and Flutter Entertainment
Can any of the company-specific risk be diversified away by investing in both FARM 51 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 FARM 51 and Flutter Entertainment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FARM 51 GROUP and Flutter Entertainment PLC, you can compare the effects of market volatilities on FARM 51 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 FARM 51 with a short position of Flutter Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of FARM 51 and Flutter Entertainment.
Diversification Opportunities for FARM 51 and Flutter Entertainment
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between FARM and Flutter is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding FARM 51 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 FARM 51 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 FARM 51 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 FARM 51 i.e., FARM 51 and Flutter Entertainment go up and down completely randomly.
Pair Corralation between FARM 51 and Flutter Entertainment
Assuming the 90 days horizon FARM 51 GROUP is expected to under-perform the Flutter Entertainment. In addition to that, FARM 51 is 1.36 times more volatile than Flutter Entertainment PLC. It trades about -0.02 of its total potential returns per unit of risk. Flutter Entertainment PLC is currently generating about 0.06 per unit of volatility. If you would invest 14,565 in Flutter Entertainment PLC on October 29, 2024 and sell it today you would earn a total of 10,675 from holding Flutter Entertainment PLC or generate 73.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
FARM 51 GROUP vs. Flutter Entertainment PLC
Performance |
| Timeline |
| FARM 51 GROUP |
| Flutter Entertainment PLC |
FARM 51 and Flutter Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FARM 51 and Flutter Entertainment
The main advantage of trading using opposite FARM 51 and Flutter Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FARM 51 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.| FARM 51 vs. COMBA TELECOM SYST | FARM 51 vs. Chunghwa Telecom Co | FARM 51 vs. Geely Automobile Holdings | FARM 51 vs. Commercial Vehicle Group |
| Flutter Entertainment vs. Carsales | Flutter Entertainment vs. CVR Medical Corp | Flutter Entertainment vs. TRADEDOUBLER AB SK | Flutter Entertainment vs. Inspire Medical Systems |
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 Stocks Directory module to find actively traded stocks across global markets.
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