Correlation Between Flutter Entertainment and Grieg Seafood
Can any of the company-specific risk be diversified away by investing in both Flutter Entertainment and Grieg Seafood 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 Flutter Entertainment and Grieg Seafood into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Flutter Entertainment PLC and Grieg Seafood, you can compare the effects of market volatilities on Flutter Entertainment and Grieg Seafood 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 Flutter Entertainment with a short position of Grieg Seafood. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flutter Entertainment and Grieg Seafood.
Diversification Opportunities for Flutter Entertainment and Grieg Seafood
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Flutter and Grieg is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Flutter Entertainment PLC and Grieg Seafood in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grieg Seafood and Flutter Entertainment 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 Flutter Entertainment PLC are associated (or correlated) with Grieg Seafood. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grieg Seafood has no effect on the direction of Flutter Entertainment i.e., Flutter Entertainment and Grieg Seafood go up and down completely randomly.
Pair Corralation between Flutter Entertainment and Grieg Seafood
Assuming the 90 days trading horizon Flutter Entertainment PLC is expected to generate 0.9 times more return on investment than Grieg Seafood. However, Flutter Entertainment PLC is 1.11 times less risky than Grieg Seafood. It trades about 0.06 of its potential returns per unit of risk. Grieg Seafood is currently generating about -0.01 per unit of risk. If you would invest 1,252,000 in Flutter Entertainment PLC on September 3, 2024 and sell it today you would earn a total of 909,000 from holding Flutter Entertainment PLC or generate 72.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Flutter Entertainment PLC vs. Grieg Seafood
Performance |
| Timeline |
| Flutter Entertainment PLC |
| Grieg Seafood |
Flutter Entertainment and Grieg Seafood Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Flutter Entertainment and Grieg Seafood
The main advantage of trading using opposite Flutter Entertainment and Grieg Seafood positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Flutter Entertainment position performs unexpectedly, Grieg Seafood 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 Grieg Seafood will offset losses from the drop in Grieg Seafood's long position.| Flutter Entertainment vs. Rockfire Resources plc | Flutter Entertainment vs. Tlou Energy | Flutter Entertainment vs. Falcon Oil Gas | Flutter Entertainment vs. Helium One Global |
| Grieg Seafood vs. Melia Hotels | Grieg Seafood vs. Capital Metals PLC | Grieg Seafood vs. Golden Metal Resources | Grieg Seafood vs. PPHE Hotel Group |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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