Correlation Between Flutter Entertainment and Blackstone Loan
Can any of the company-specific risk be diversified away by investing in both Flutter Entertainment and Blackstone Loan 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 Blackstone Loan 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 Blackstone Loan Financing, you can compare the effects of market volatilities on Flutter Entertainment and Blackstone Loan 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 Blackstone Loan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flutter Entertainment and Blackstone Loan.
Diversification Opportunities for Flutter Entertainment and Blackstone Loan
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Flutter and Blackstone is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Flutter Entertainment PLC and Blackstone Loan Financing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackstone Loan Financing 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 Blackstone Loan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackstone Loan Financing has no effect on the direction of Flutter Entertainment i.e., Flutter Entertainment and Blackstone Loan go up and down completely randomly.
Pair Corralation between Flutter Entertainment and Blackstone Loan
Assuming the 90 days trading horizon Flutter Entertainment PLC is expected to generate 1.94 times more return on investment than Blackstone Loan. However, Flutter Entertainment is 1.94 times more volatile than Blackstone Loan Financing. It trades about 0.06 of its potential returns per unit of risk. Blackstone Loan Financing is currently generating about 0.0 per unit of risk. If you would invest 1,270,000 in Flutter Entertainment PLC on October 29, 2024 and sell it today you would earn a total of 873,000 from holding Flutter Entertainment PLC or generate 68.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 98.39% |
| Values | Daily Returns |
Flutter Entertainment PLC vs. Blackstone Loan Financing
Performance |
| Timeline |
| Flutter Entertainment PLC |
| Blackstone Loan Financing |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
Flutter Entertainment and Blackstone Loan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Flutter Entertainment and Blackstone Loan
The main advantage of trading using opposite Flutter Entertainment and Blackstone Loan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Flutter Entertainment position performs unexpectedly, Blackstone Loan 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 Blackstone Loan will offset losses from the drop in Blackstone Loan's long position.| Flutter Entertainment vs. Gruppo MutuiOnline SpA | Flutter Entertainment vs. Wizz Air Holdings | Flutter Entertainment vs. Delta Air Lines | Flutter Entertainment vs. Spirent Communications plc |
| Blackstone Loan vs. Pan American Silver | Blackstone Loan vs. Austevoll Seafood ASA | Blackstone Loan vs. Ebro Foods | Blackstone Loan vs. Blackrock World Mining |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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