Correlation Between Flutter Entertainment and G5 Entertainment
Can any of the company-specific risk be diversified away by investing in both Flutter Entertainment and G5 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 Flutter Entertainment and G5 Entertainment 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 G5 Entertainment AB, you can compare the effects of market volatilities on Flutter Entertainment and G5 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 Flutter Entertainment with a short position of G5 Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flutter Entertainment and G5 Entertainment.
Diversification Opportunities for Flutter Entertainment and G5 Entertainment
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Flutter and 0QUS is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Flutter Entertainment PLC and G5 Entertainment AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on G5 Entertainment 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 G5 Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of G5 Entertainment has no effect on the direction of Flutter Entertainment i.e., Flutter Entertainment and G5 Entertainment go up and down completely randomly.
Pair Corralation between Flutter Entertainment and G5 Entertainment
Assuming the 90 days trading horizon Flutter Entertainment PLC is expected to generate 0.72 times more return on investment than G5 Entertainment. However, Flutter Entertainment PLC is 1.39 times less risky than G5 Entertainment. It trades about 0.4 of its potential returns per unit of risk. G5 Entertainment AB is currently generating about 0.18 per unit of risk. If you would invest 1,797,000 in Flutter Entertainment PLC on September 2, 2024 and sell it today you would earn a total of 364,000 from holding Flutter Entertainment PLC or generate 20.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Flutter Entertainment PLC vs. G5 Entertainment AB
Performance |
| Timeline |
| Flutter Entertainment PLC |
| G5 Entertainment |
Flutter Entertainment and G5 Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Flutter Entertainment and G5 Entertainment
The main advantage of trading using opposite Flutter Entertainment and G5 Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Flutter Entertainment position performs unexpectedly, G5 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 G5 Entertainment will offset losses from the drop in G5 Entertainment's long position.| Flutter Entertainment vs. Viridian Therapeutics | Flutter Entertainment vs. CVR Energy | Flutter Entertainment vs. Nationwide Building Society | Flutter Entertainment vs. Dollar Tree |
| G5 Entertainment vs. Uniper SE | G5 Entertainment vs. Mulberry Group PLC | G5 Entertainment vs. London Security Plc | G5 Entertainment vs. Triad Group PLC |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |