Correlation Between Franklin Wireless and Flutter Entertainment
Can any of the company-specific risk be diversified away by investing in both Franklin Wireless 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 Franklin Wireless and Flutter Entertainment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franklin Wireless Corp and Flutter Entertainment plc, you can compare the effects of market volatilities on Franklin Wireless 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 Franklin Wireless with a short position of Flutter Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Wireless and Flutter Entertainment.
Diversification Opportunities for Franklin Wireless and Flutter Entertainment
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Franklin and Flutter is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Wireless Corp 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 Franklin Wireless 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 Franklin Wireless Corp 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 Franklin Wireless i.e., Franklin Wireless and Flutter Entertainment go up and down completely randomly.
Pair Corralation between Franklin Wireless and Flutter Entertainment
Given the investment horizon of 90 days Franklin Wireless is expected to generate 5.13 times less return on investment than Flutter Entertainment. But when comparing it to its historical volatility, Franklin Wireless Corp is 1.01 times less risky than Flutter Entertainment. It trades about 0.01 of its potential returns per unit of risk. Flutter Entertainment plc is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 13,969 in Flutter Entertainment plc on September 14, 2024 and sell it today you would earn a total of 14,146 from holding Flutter Entertainment plc or generate 101.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Franklin Wireless Corp vs. Flutter Entertainment plc
Performance |
| Timeline |
| Franklin Wireless Corp |
| Flutter Entertainment plc |
Franklin Wireless and Flutter Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Wireless and Flutter Entertainment
The main advantage of trading using opposite Franklin Wireless and Flutter Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Wireless 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.| Franklin Wireless vs. Passage Bio | Franklin Wireless vs. Black Diamond Therapeutics | Franklin Wireless vs. Alector | Franklin Wireless vs. Century Therapeutics |
| Flutter Entertainment vs. Sphere Entertainment Co | Flutter Entertainment vs. Tower One Wireless | Flutter Entertainment vs. Ihuman Inc | Flutter Entertainment vs. Franklin Wireless Corp |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |