Correlation Between Flutter Entertainment and Aptitude Software
Can any of the company-specific risk be diversified away by investing in both Flutter Entertainment and Aptitude Software 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 Aptitude Software 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 Aptitude Software Group, you can compare the effects of market volatilities on Flutter Entertainment and Aptitude Software 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 Aptitude Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flutter Entertainment and Aptitude Software.
Diversification Opportunities for Flutter Entertainment and Aptitude Software
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Flutter and Aptitude is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Flutter Entertainment PLC and Aptitude Software Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aptitude Software 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 Aptitude Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aptitude Software has no effect on the direction of Flutter Entertainment i.e., Flutter Entertainment and Aptitude Software go up and down completely randomly.
Pair Corralation between Flutter Entertainment and Aptitude Software
Assuming the 90 days trading horizon Flutter Entertainment PLC is expected to generate 0.7 times more return on investment than Aptitude Software. However, Flutter Entertainment PLC is 1.43 times less risky than Aptitude Software. It trades about 0.13 of its potential returns per unit of risk. Aptitude Software Group is currently generating about -0.01 per unit of risk. If you would invest 2,090,000 in Flutter Entertainment PLC on November 3, 2024 and sell it today you would earn a total of 91,000 from holding Flutter Entertainment PLC or generate 4.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Flutter Entertainment PLC vs. Aptitude Software Group
Performance |
| Timeline |
| Flutter Entertainment PLC |
| Aptitude Software |
Flutter Entertainment and Aptitude Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Flutter Entertainment and Aptitude Software
The main advantage of trading using opposite Flutter Entertainment and Aptitude Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Flutter Entertainment position performs unexpectedly, Aptitude Software 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 Aptitude Software will offset losses from the drop in Aptitude Software's long position.| Flutter Entertainment vs. Herald Investment Trust | Flutter Entertainment vs. EJF Investments | Flutter Entertainment vs. Verizon Communications | Flutter Entertainment vs. Zoom Video Communications |
| Aptitude Software vs. Molson Coors Beverage | Aptitude Software vs. Ashtead Technology Holdings | Aptitude Software vs. Mobius Investment Trust | Aptitude Software vs. Software Circle 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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