Correlation Between Flutter Entertainment and Atalaya Mining
Can any of the company-specific risk be diversified away by investing in both Flutter Entertainment and Atalaya Mining 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 Atalaya Mining 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 Atalaya Mining, you can compare the effects of market volatilities on Flutter Entertainment and Atalaya Mining 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 Atalaya Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flutter Entertainment and Atalaya Mining.
Diversification Opportunities for Flutter Entertainment and Atalaya Mining
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Flutter and Atalaya is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Flutter Entertainment PLC and Atalaya Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atalaya Mining 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 Atalaya Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atalaya Mining has no effect on the direction of Flutter Entertainment i.e., Flutter Entertainment and Atalaya Mining go up and down completely randomly.
Pair Corralation between Flutter Entertainment and Atalaya Mining
Assuming the 90 days trading horizon Flutter Entertainment PLC is expected to generate 0.88 times more return on investment than Atalaya Mining. However, Flutter Entertainment PLC is 1.13 times less risky than Atalaya Mining. It trades about 0.21 of its potential returns per unit of risk. Atalaya Mining is currently generating about -0.05 per unit of risk. If you would invest 1,634,000 in Flutter Entertainment PLC on September 2, 2024 and sell it today you would earn a total of 527,000 from holding Flutter Entertainment PLC or generate 32.25% 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. Atalaya Mining
Performance |
| Timeline |
| Flutter Entertainment PLC |
| Atalaya Mining |
Flutter Entertainment and Atalaya Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Flutter Entertainment and Atalaya Mining
The main advantage of trading using opposite Flutter Entertainment and Atalaya Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Flutter Entertainment position performs unexpectedly, Atalaya Mining 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 Atalaya Mining will offset losses from the drop in Atalaya Mining's long position.| Flutter Entertainment vs. Viridian Therapeutics | Flutter Entertainment vs. CVR Energy | Flutter Entertainment vs. Nationwide Building Society | Flutter Entertainment vs. Dollar Tree |
| Atalaya Mining vs. Scandic Hotels Group | Atalaya Mining vs. Young Cos Brewery | Atalaya Mining vs. Fair Oaks Income | Atalaya Mining vs. Park Hotels Resorts |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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